Dive Brief:
- Heineken selected Rafael Oliveira as its chairman and CEO. The former JDE Peet's chief executive will leave Keurig Dr Pepper, where he was set to run the beverage giant's coffee unit.
- Oliveira will take the helm on Oct. 1 for a four-year term pending shareholder approval and will be tasked with leading a turnaround at the beer giant. Prior to JDE Peet's, he led international markets at Kraft Heinz.
- Heineken CEO and Chairman Dolf van den Brink said in January he was leaving the company in May following a nearly six-year run as top executive. In February, Heineken announced plans to cut up to 6,000 roles, or about 7% of its workforce, during the next two years to reduce costs amid declining beer sales.
Dive Insight:
The Netherlands-based alcohol giant is turning to a seasoned CPG executive to help it navigate a challenging period.
Heineken is not only dealing with executive turnover at the top but it is also navigating a slowdown in beer sales as spending declines due to inflation and consumers cut back on booze or switch to ready-to-drink cocktails and other alcohols.
In April, the company said total volume rose 1.2% despite an "increasingly complex" economic climate, including higher energy prices. Last year proved to be especially challenging, with Heineken’s total volume slipping 1.2% from the previous year.
In a statement, Heineken said Oliveira’s appointment to lead Keurig Dr Pepper’s planned coffee business underscores “his proven ability to lead complex global enterprises.” The beer maker said Oliveira is a “highly accomplished international consumer goods leader” with more than two decades of leadership experience in both developed and emerging markets.
“Throughout his career, Rafa has consistently transformed complex challenges into clear organisational priorities, aligning teams around what matters most, and driving disciplined execution of strategy,” Peter Wennink, chair of Heineken’s supervisory board, said in a statement. “With Rafa at the helm, we look forward to building on HEINEKEN’s strong foundations and continuing our journey of long-term, balanced growth.”
In picking Oliveira, Heineken is selecting an outsider who is familiar with beverages, but may not be as intimately familiar with the different set of challenges facing beer. His deep understanding of the CPG space could offer a fresh perspective to the storied company.
For Keurig Dr Pepper, the timing of Oliveira’s departure is less than ideal. The company closed its merger with Peet’s in April and is now moving forward with the spinoff of its coffee operations, which is expected to take place toward the end of this year.
Keurig Dr Pepper said its board has started a search for a new CEO of its coffee business. Tim Cofer, CEO of Keurig Dr Pepper, will continue to oversee coffee in the interim. Cofer is set to serve as CEO of Keurig's beverage business, which includes soft drinks, water, juice and energy, following the separation.
This is now the second time Keurig Dr Pepper will need to find a new executive to lead its coffee business after the company said last October that CFO Sudhanshu Priyadarshi would no longer assume the position. Keurig Dr Pepper named Oliveira to the post in April.
“Our conviction in the value creation opportunity for Global Coffee Co. has only strengthened since the transaction's close,” Pamela Patsley, Keurig Dr Pepper’s chair, said in a statement. “We are confident we will secure the right world-class executive to lead the coffee business and maximize shareholder returns.”
