Heineken has broken with decades of tradition by appointing Rafael Oliveira, the former CEO of JDE Peet's, as its new chief executive. This marks the first time the Dutch beer giant has chosen a complete outsider to lead the company, a move driven by shareholder pressure and declining beer consumption. Oliveira, who was set to run Global Coffee Co following Keurig Dr Pepper's €16bn acquisition of his previous employer, brings experience from Kraft Heinz and Goldman Sachs. He replaces Dolf van den Brink, who departed earlier than expected in May.

The appointment comes as Heineken battles sliding beer sales and inflationary pressures that have weighed on performance. The family-controlled company, dominated by the De Carvalho-Heineken family with five of eight board seats, had considered internal candidates but ultimately chose an outsider to bring fresh perspective. Analysts at Jefferies expect Oliveira to build on the existing strategy rather than overhaul it, focusing on sharper execution and portfolio decisions. The brewer plans to cut 7% of its global workforce as part of cost-reduction efforts.

Market performance tells the story of Heineken's challenges: shares have fallen 30% in five years, underperforming peers like Anheuser-Busch InBev and Carlsberg. At €73 per share, the company trades at roughly €40bn market capitalization. While the board unanimously backed Oliveira for his strategic vision and operational expertise, investors will watch whether his fresh perspective can revive growth in an industry facing changing consumer preferences away from beer.

Oliveira takes the reins with his four-year mandate beginning in October, tasked with executing Heineken's existing strategy while delivering improved results. The market responded positively, sending shares up more than 2% on the announcement.