Financial roundup

CCEP sales fizz, Heineken toasts growth, Kerry Group revenue up

By Rod Addy

- Last updated on GMT

CCEP claimed growth across almost all categories
CCEP claimed growth across almost all categories

Related tags Finance Drinks

Sparkling drinks drove strong full-year sales growth for Coca-Cola Europacific Partners (CCEP) as markets began to recover from the pandemic, while Taste & Nutrition helped lift Kerry Group's annual performance and Heineken's revenue rose.

Coca-Cola Europacific Partners

In the full-year (FY) to 31 December 2021, CCEP reported its biggest volume sales growth in ready to drink tea, coffee, juices, coffee and alcohol, with 'solid growth' from Capri Sun. However, the segment only represents 8% of its sales. Sales for the largest part of its business - sparkling drinks, which represents 84.5% of sales volumes - grew by 4.5%.

The company claimed growth across almost all categories, with Coca-Cola Zero Sugar leading the way in its Coca-Cola range and Monster leading the way in flavours, mixers and energy drinks. Overall sales in its hydration category were flat.

In Britain, fourth quarter sales volumes reflected a recovery of CCEP's away from home channel, with few restrictions in place during the quarter. FY volumes reflected the continued recovery of the channel, as well as increased domestic tourism. The home channel delivered 'solid performance'.

Recycled PET

In Europe, the company also announced it had reached 53% recycled polyethylene terephthalate (PET) across all its products, achieving its 2023 target two years early.

Chief executive officer Damian Gammell said: "2021 was an extraordinary year for CCEP. We are a stronger more diverse business, built on great people, great service and great beverages - done sustainably. Solid top-line recovery, value share gains, operating margin expansion and remarkable free cash flow generation demonstrate our strong performance in a challenging environment. Our results also reflect the successful acquisition and integration of Coca-Cola Amatil, a fantastic business to have acquired at the right time, as we look forward to an even brighter future together.

"We are well placed as we look to FY22 and beyond. Our aim is to be smart and sustainable - through our people centric, data driven and digitally enabled approach. Disciplined investment in these areas, as well as in our portfolio, will support our long-term growth ambitions. In the near-term, we expect to see further volume and mix recovery whilst managing our key levers of pricing, promotional spend and driving efficiencies across our business, collectively with the aim of mitigating inflationary pressures."

Figures at a glance

Total reported volume sales: +23% compared to 2020

Total reported value sales: +30% to €13.8bn

Total reported operating profit: +86.5% to €1.5bn

FY GB value sales excluding currency fluctuations: +14% to €2.6bn

GB value sales for fourth financial quarter: +16.5% to €702m

Kerry Group

In the year ended 31 December 2021, Kerry Group reported strong single digit volume and value sales growth, driven by similar single digit growth in its Taste & Nutrition and Consumer Foods channels.

Jason Molins, food and beverage analyst at Goodbody said: “Kerry Group has reported a solid performance, benefitting from improved market conditions across its core Taste & Nutrition portfolio. Retail has remained resilient and foodservice trading has rebounded to above 2019 levels, enabling today’s update to reassure that the business is demonstrating clear recovery from the challenges posed by the COVID-19 crisis. 

"While the sector is being impacted by the current period of heightened inflation, the group is well placed to manage through the cycle given its well-established pricing model and cost initiatives, and we anticipate continued, stable growth in the months ahead.”

Food trends

In terms of food trends, the company said consumer demand for plant-based, functional products for specific health requirements, taste without compromise and products with an improved sustainability impact had boosted commercial performance. The business achieved strong growth in food waste applications, supported by the acquisition of Niacet, and plant-based applications, with new launches incorporating Kerry Group's Radicle plant-based range.

At-home consumption had remained strong, with foodservice improving as consumers embraced the opportunities for more out-of-home social engagement and food consumption.

Richmond’s meat-free range and Fridge Raiders helped boost sales. Meals achieved strong growth supported by chilled meals health and wellness ranges and performance of the Oakhouse Foods home delivery business.

Dairy delivered strong overall growth with an excellent final quarter. This was led by volume growth in the Strings & Things snacking range, with spreadable butter ranges also delivering a strong performance.


In Europe, meat achieved excellent growth through plant-based meat alternative innovations, launches with natural preservation and increased demand for healthier coating systems. Bakery and confectionery delivered a very strong performance through texture systems and indulgent innovations. Dairy achieved strong growth in premium and dairy-free ice cream ranges, while international dairy markets reflected increased demand versus supply dynamics. There was good sales growth in drinks, with low/non-alcoholic beverages incorporating Kerry’s botanicals, natural extracts and sugar reduction technologies.

The foodservice channel achieved excellent growth particularly in the UK and Southern Europe. This growth was broad-based across our end use markets, as customers extended their menu ranges and reintroduced limited time offers as the year progressed. Russia and Eastern Europe continued to deliver very strong growth across both retail and foodservice channels, led by meat and snacks.

Reported value sales in Kerry Group's consumer foods market fell. Strong volume growth was more than offset by the sale of the meats and meals business.

Chief executive officer Edmund Scanlon said: "We ended the year on a strong note with excellent growth across our business. In 2021 we achieved strong overall growth across all regions with group revenue of €7.4bn, driven by volume growth of 8%. In the Taste & Nutrition retail channel we continued to deliver strong growth, while we achieved excellent growth in foodservice with business volumes in all regions above 2019 levels in the fourth quarter. This growth was well spread across our end use markets, with beverage, bakery and meat delivering particularly strong performances.

"While recognising that current market environment and inflationary pressures continue to present challenges across our industry, Kerry is stronger positioned and more resilient than ever as we enter a new strategic cycle. Our earnings guidance range for 2022 reflects the group’s strong growth prospects and the net effect of recent portfolio developments."

Figures at a glance

Group value sales +5.7% to €7.4bn compared to 2020

Taste & Nutrition volume sales +8% to €6.3bn (fourth financial quarter (Q4): +7.2%)

Consumer Foods volumes sales +6%, but value down to €1.1bn (Q4: +7.1%)

European value sales +14.6% to €1.6bn


Heineken hailed strong double digit value and volume growth and gross savings close to €1.3bn in full-year 2021 results, while it almost quintupled operating profit.

In the UK, it reported total volume up by a mid-single-digit, in line with the total market. Consumers showed a growing appetite for premium products, driving the growth of our premium beer portfolio by a high-single-digit, led by Birra Moretti and Desperados, it added. Birra Moretti reached more than 1 million hectolitres this year. Its low-and non-alcoholic portfolio posted strong growth, led by the continued success of Heineken 0.0. The company's pub estate opened quickly and safely, ahead of the wider on-trade.

The business declared aims to expand outside of beer in areas such as cider and hard seltzers, to increase its low and no-alcohol portfolio off the back of strong growth, to build its e-commerce activity and boost its footprint.

Dolf van den Brink, chairman of the executive board and chief executive officer said: "We delivered a strong set of results in 2021 in a challenging and fast-changing environment. I am proud of how our colleagues, customers, and suppliers continued to adapt, support one another, and deliver these results. We made a big step towards recovering to pre-pandemic levels, and in parts going beyond.

"We raised the bar on sustainability and responsibility and are making big strides in rightsizing our cost base. Looking ahead, although the speed of recovery remains uncertain and we face significant inflationary challenges, we are encouraged by the strong performance of our business and how​ [multi-year growth strategy] EverGreen is taking shape. This gives me confidence we are on course to deliver superior and balanced growth to drive sustainable long-term value creation."

Figures at a glance

Value sales +11.8% to €26.6bn according to International Financial Reporting Standards

Operating profit +476.2% to €4.5bn

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