Heineken puts all South African wine labels under strategic review

Heineken is reassessing the role of wine in its South African business, putting all of its local wine labels under what the company’s finance chief called a strategic review as it tries to address weak performance in that part of the portfolio.

On Wednesday, October 28, Harold van den Broek, chief financial officer of The Heineken Company, told analysts that the group was reviewing its South African wine brands but had not made any quick decisions. “We are not making rash decisions on what to do, but we do have it under strategic review,” he said, according to comments reported by Bloomberg and cited by The Drinks Business.

The review covers the wine operations housed within Heineken Beverages, the division created after Heineken bought Distell and Namibia Breweries in 2023 in a €2.2 billion deal. That transaction gave the Dutch brewer a much broader presence in southern Africa and added a group of established South African wine brands to a business better known globally for beer.

Van den Broek said the review includes all of Heineken Beverages’ South African wine labels, including Nederburg and JC Le Roux. He also said the company is actively discussing whether it can compete effectively in some wine segments in the country. He did not say whether Heineken was considering a sale of any wine assets.

The comments point to a difficult contrast inside Heineken’s South African drinks portfolio. While the company has seen stronger momentum in beer and ready-to-drink products, its wine business has been under pressure. That makes the review important for the beverage sector because any shift in strategy could affect the commercial direction of a significant group of South African wine brands, even though no disposal has been announced.

Van den Broek told analysts that the company has faced market-share losses and complicated integration issues since combining the acquired businesses. “We are really working very hard to bring volumes back into our business in South Africa,” he said.

The remarks also follow earlier comments from former Heineken chief executive Dolf van den Brink, who said the brewer had “dropped the ball on a couple of commercial elements” before leaving the top job in October. He has been replaced by Rafael Oliveira.

Executives inside Heineken Beverages have also described a difficult backdrop for wine in South Africa. Darno Van Dyk, head of the wine category for Heineken Beverages in South Africa, told The Drinks Business that consumers are under financial pressure, costs remain high and competition is intense, not only within wine but across the wider alcohol market.

“It is a challenging environment for wine at the moment,” Van Dyk said. He added that the company sees an opportunity to convert product quality into stronger brands and stronger value for the category.

Van Dyk said the company’s wine portfolio has “real heritage and credibility,” pointing to brands such as Nederburg, Durbanville Hills and Zonnebloem. But he also said Heineken believes more can be done to strengthen its core still-wine labels and give consumers clearer reasons to choose them and trade up within the range.

His comments suggest the review is not only about possible structural changes, but also about brand positioning and pricing in a market where South African wine has long been associated with good value. Van Dyk said the country should have more confidence in building brands and stories that allow its wines to command prices that better reflect their quality.

He argued that South Africa has spent years being known for offering very good wine at competitive prices, but said that reputation should not prevent producers from pushing for more premium pricing where quality supports it. He also said the 2026 vintage gives the industry reasons for optimism.

For Heineken, however, the immediate challenge is balancing that long-term view with current commercial realities. The company is still digesting a major acquisition, and its wine business appears to have been slower to respond than other categories in the portfolio. The review suggests management is questioning whether all parts of the wine operation fit its growth plans, or whether some parts need sharper execution, a different commercial approach or a narrower focus.

The timing is notable because Heineken’s broader business performed better than expected in the third quarter. On the same Wednesday, October 28 analyst call, the company said group volumes rose more than expected, helped by strong beer demand in Asia and a rebound in the Americas. Investors responded positively, and Heineken shares rose 2.2%.

In a results statement, Oliveira said the company has “strong foundations” but is not consistently turning them into growth or winning with consumers and customers often enough. He called for faster execution and greater accountability and said he would provide more detail on his plans when Heineken reports full-year results in February 2027.

That leaves South Africa’s wine portfolio in a period of uncertainty. The brands remain part of a large beverage platform created by one of the biggest deals in the region’s drinks industry, but Heineken is signaling that their future role is being reconsidered as it tries to improve performance in a competitive and cost-sensitive market.