Heineken boss urges easing of alcohol-free promotions – Daily Business

A beer industry leader today cautioned First Minister John Swinney against restricting the promotion of alcohol-free products and called for him to extend the relief on business rates.

Ministers are again considering a limit on alcohol advertising but Boudewijn Haarsma, managing director of Heineken UK, said they should look at the steps that have already been taken to control alcohol consumption.

He noted that the industry was pushing non-alcoholic alternatives, including its own 00 brand, which now accounted for 2% of the market.

Speaking during the official opening of the company’s new head office in Edinburgh, Mr Haarsma said there had to be a “conversation” on how various regulations “add up”.

He hoped the Scottish government would remain committed to the 40% discount on business rates that reflects similar action in England and has been a big help for pub tenants.

Mr Swinney responded by saying it was “important we have a realistic and responsible discussion about alcohol consumption because of the clear health implications involved. The government will engage with the sector on all these questions.”

The First Minister has promised that his programme for government on Tuesday will include more support for business, though he was unwilling to offer any clues about what this will be, apart from saying it will address “strategic challenges that businesses face”.

Commenting on the opening of Heineken’s new offices in St Andrew Square, Edinburgh, the First Minister said the company’s £2m investment was “an indication of Heineken’s belief that Scotland continues to be an excellent location for businesses.”

The company along with Carlsberg acquired Scottish & Newcastle in 2008 and they divided its assts.

S&N was renamed Heineken UK which took over its offices at the Gyle. Following the expiry of its lease it has now relocated to two floors of offices in St Andrew Square. They were purpose-built by Standard Life Aberdeen [now Aberdeen Group] and occupied by the company from 2017 only for it to vacate the building in 2023.

Mr Haarsma said the 500 staff, engaged in customer care, IT, finance and HR, would be expected to work at least three days per week in the office, including Tuesdays and Thursdays.

“This city centre location will help us attract and retain the talent that will enable our business to go from strength to strength,” he said.

“Moving our Scottish base to this beautiful square at the heart of Edinburgh is especially significant as it marks a return to the square that Scottish & Newcastle also made its home. It’s a place to which Heineken owes much of its presence today in the UK.” 

Edinburgh and London remain dual head offices, with Edinburgh now the company’s largest site. Mr Haarsma will be based in London, but will make frequent visits to Scotland.

The UK board is split between Edinburgh and London, and will have board meetings in both cities, as well as other UK locations including Manchester, Tadcaster and Herefordshire.

Mr Haarsma accepted that while Heineken was investing £40m into its UK pubs estate, and had committed £194m since 2020, it would not be brewing beer in Scotland and had no plans to do so. Critics note that since its acquisition of Scottish & Newcastle, the Fountainbridge and Caledonian breweries have both closed.

Heineken is investing £4.5m in its Scottish pubs, but none of the beers on tap in the new office bar are brewed in Scotland.