The brewery Veltins wants to introduce in the second half of another beverage brand in Germany. Source: Reuters
DUSSELDORF. The German beer drinkers while remaining true to its brand in a crisis. But the breweries have because of the slump in consumption in the wake of the financial and economic crisis last year produced an average of about three per cent less beer than last year. The losses hit with a range of minus 0.2 percent (Bitburger) to minus 4.9 percent (Warsteiner Group whole) especially the big German private breweries in family hands. Therefore now they are looking for new growth strategies.
"Our core audience is shrinking, we must attract new consumers," took Michael Huber, chief representative of the brewery, C & A Veltins, when his company’s annual press conference in Dusseldorf, the dilemma of the breweries to the point.
The Veltins-chief announced alongside a new flavor to the beer-mix brand Vplus ", which will come in March on the market, the introduction of an entirely new beverage brand in the second half-year. "With this alcoholic beverage, we wish to embark upon a third way," Huber said, referring to the already existing two Veltins brands. Details could be elicit Huber Recalling the-nails competition among beverage companies do not. "We are certainly not buy a toy company, we remain faithful to the beverage market," Huber said, referring to the competitor, Bitburger, who had announced the day before the adoption of baby clothing and toy manufacturer Sterntaler.
While the introduction of Vplus-flavor "Grapefruit" by industry experts, is interpreted as an important step in providing the highly successful brand beermix Schöfferhofer Radeberger stand up to the competitor, leaving the Veltins-plan for the creation of a third beverage brand more perplexity.
For previously was only the trendy drink ladies’ Eve ", in less than two years ago by the Danish brewing group Carlsberg introduced in Germany, ado has been reinstated. The apricot fruit drink with 3.1 percent alcohol was not part of the start of the core competence of the Danes, which otherwise with the classic beer brands Carlsberg, Tuborg and Holsten vying to thirsty men throats.
The financial uncertainties that threaten a company to launch an unknown brand, is aware of Huber as he hinted at a press conference in Dusseldorf, "has prevailed up to a brand can take a lot of time," he said on his assessment of the export business, which runs at Veltins rather badly and obviously no hope for is: "The export market is difficult and expensive," said Huber, anyway.
In contrast to international Braugiganten as Heineken, AB Inbev or Carlsberg, Which also today still dominated by families or their graduations, have the German private breweries in the majority away from the foreign markets. Only 15 percent of German beer production will be delivered according to the German Brewers Association (DBB) abroad. International itself plays the biggest German brewery group, which the Bielefeld Oetker Group owned Radeberger group, no significant role.
One of the few exceptions is the Warsteiner Group, which comprises from West Africa to Argentina on a number of foreign interests and a significant export of 640 000 hectoliters of beer. But if the world economy to falter, this will affect, as in the past year, including direct impact on the international business of the group.
The export business of the family business Sauerländer went last year fell by more than ten percent. Especially in the U.S. consumers access to less expensive imported beer. The import markets of the euro-zone on the other hand developed more robust in the past year, reports Warsteiner. Including the Argentine subsidiary Casa Isenbeck the Warsteiner Group in 2009 reached a total output of 5.7 million hectoliters. The preliminary total sales, including the hotel business at Warsteiner amounts to a projected 560 million euro and is thus 3.4 percent below the comparable period last year.
Sales at the Veltins brewery over the past year declined by 2.3 percent to 256 million euros. Sales at the Veltins-group with wholesalers, the "Dursty" drinks market chain and Getränkelogistikern amounted in 2009 to 642 million euros.
The brewery Krombacher, which in the past again and again by the introduction of new products which could defy negative trend on the German beer market, sees the German brewers against tough year. Is not "2010 easier," said the managing director Stephan Krombacher Maubach previously at the balance sheet presentation of his company. The market is hotly contested and the beer consumption will continue to decline.
In 2009 the output of the group fell by 1.4 percent Monday to 5.59 hl. The family-owned company from the North Rhine-Westphalia Kreuztal but fell short of the previous year’s turnover of 642 million dollars since the alcoholic group belonging to the Schweppes and Orangina beverage brands to develop positively.
With a reduction of around 800 000 hectoliters of the Radeberger group alone contributed about one quarter to the decline in the German beer market. Data on the evolution of the gains or losses do not generally publish the breweries.
"We have made gains, however, confirmed yesterday Veltins-Chief Huber, a long-term holding of an annual minus paragraph or two per cent to the domestic beer market for" a predictable size. "
Brewing international: Heineken and Carlsberg win
The two major international Braukonzerne Carlsberg and Heineken struggling in an ailing world’s beer market increased their market share.
Dutch Braugigant Heineken expected in many regions with a lower heel and wants to compensate for higher prices. The Danish competitor proceeds from burglaries in the important Russian market and sets a higher efficiency.
The business of both groups suffer from the reluctance of consumers, the savings in the economic crisis and drink less beer. Also expected in the current year Carlsberg with a "challenging" behavior of consumers. 2009 had Heineken, Which includes, inter alia, the Amstel brand, increase prices. Also this year the profit is to be secured by raising prices, but the resurgence will be significantly lower.
Carlsberg by contrast, uses Russia. The total Russian beer market will shrink in 2010 while in the low single-digit range, but the company had set a target to lose less than their competitors and thus gain market share. In Russia, the demand for CarlsbergDrinks in the past year, according to the information provided by one percent.
Rose in the fourth quarter Carl Berg operating profit by 17 percent to about 1.64 billion Danish kroner (220 million euros), as the world’s fourth largest brewery group announced in Copenhagen. In the previous comparison that the Danes are among the best known brands Tuborg and Holsten, earned 1.39 billion kronor. Sales fell by one percent to about eight billion euros. Largest shareholder of the listed company is a family foundation.
At Heineken – The world’s number three in the industry – earnings before interest, tax and special items in the crisis year 2009 by 14 percent to 2.1 billion euros. Revenue increased by 2.7 percent to 14.7 billion euros.
The profit increase comes about primarily through cost reductions. The three-year austerity program designed according to the company will continue in all segments.
Losses due to the reduced beer consumption in addition to cost reductions were offset by profitable acquisitions – including the British brewer Scottish & Newcastle and the Mexican rival Femsa Cerveza -. In the past year had "the beer sector, one of the most difficult market conditions ever experienced," said HeinekenCEO Jean-Francois van Boxmeer. In 2010 was in many regions likely to be that beer drinkers are expensive brands on the shelf.
The HeinekenShares yesterday rose 2.75 percent to 36 euros. 50.1 percent of the shares are held by a family holding company of HeinekenHeiress Charlene de Carvalho is dominated. The shares of CarlsbergBrewery enjoyed by investors, they rose by almost six percent to around 55 euros. HB / ire