Vienna  - Dutch beer brewer Heineken will consolidate its recent acquisitions in Central and Eastern Europe (CEE) rather than buy more breweries, Austrian news agency APA reported Tuesday.

With earnings before interest and taxes (EBIT) of 177 million euros (253 million dollars) in the first half of this year, the CEE division of the world's third largest brewer faced a
12-per-cent decline in operating profits.

"High production costs, the economic slowdown and unfavourable weather conditions put us to the test," Heineken president for the CEE region Nico Nusmeier said in a statement.

Mainly because it bought 11 breweries in the past 12 months, Heineken's Vienna-based CEE division increased its sales by 14 per cent to 1.76 billion euros in the six months until June, compared to the same period last year.

Now it was time to consolidate the acquisitions, APA quoted Nusmeier as saying.

Beer consumption is stagnating in developed markets such as the United States and Western Europe, while in CEE, output volumes continue to rise as purchasing power grows and customers switch from vodka to beer, the company said.

In July and August, Heineken bought four breweries from the Drinks Union in the Czech Republic, as well as the Rechitza brewery in Belarus.

The CEE division - which also includes Austria, Germany, and Greece - accounts for 42.5 per cent of Heineken's global production. (dpa)