Krombacher output up 1.5 %, Schweppes up 4.3 %

The Krombacher Group’s top brands performed gratifyingly well in the 2010 financial year just ended. Both Krombacher and Schweppes were able to increase their output. Output for the Krombacher brand was up 1.5 % to 5.296 mill. hectolitres now (previous year: 5.220 mill. hl), that for the Schweppes brand up 4.3 % to 780,000 hectolitres now (previous year: 748,000 hl). This organic growth is seen at Krombacher as proof of the strength of these brands. Output for the Krombacher Group in 2010 totalled 6.393 mill. hectolitres, representing a rise of 0.8 % (= 51,000 hl) on the previous year.

Sales revenue in the Krombacher Group rises to 647.2 mill. euro

The Krombacher Group in 2010 increased its total sales by 0.7 % (= 4.6 mill. euro) to 647.2 mill. euro now (previous year: 642.6 mill. euro). Sales at Krombacher Brauerei thus come to 557.1 mill. euro (previous year: 554.5 mill. euro). A strong performance was put in by the Schweppes family, which can point to a growth in sales of 4.2 % (= 3.1 mill. euro) and therefore sales of 76.7 mill. euro (previous year: 73.6 mill. euro).

The catering segment performed better than the market and finished 2010 with a decrease of 3.4 %, representing an output of 719,000 hectolitres (previous year: 744,000 hl). The Krombacher export segment recovered from the downturn of 2009 and grew by 7.5 % to 144,000 hectolitres (previous year: 134,000 hectolitres). Beer-based mixed drinks of the Cab brand were down by 45,000 hl. Cab output currently stands at 111,000 hectolitres (previous year: 156,000). Other brands stand at 206,000 hl (previous year: 218,000 hl). Employee levels remain unchanged at 866 (previous year: 865).

Krombacher Pils - the leading pils label in Germany by far

Krombacher Pils in the year just ended succeeded in maintaining its position as market leader and expanding it on the previous year. Market research shows a market share of 9.5 % (previous year: 9.0 %) for Krombacher Pils. For the last period under review Krombacher Pils actually shows a market share of 9.7 % (source: Nielsen Market Research). This means that in the pils market, the largest segment of the beer market in Germany by far, now almost every tenth pils drunk in Germany comes from Krombach.

Krombacher Pils achieved an output increase of 13,000 hectolitres on 2009. Krombacher Pils thus reports for 2010 earnings of 4.495 mill. hectolitres (previous year: 4.482 mill. hl). The TV spot with its dynamic camerawork and new music certainly contributed successfully to giving the Krombacher Pils brand an up-to-date look.

Krombacher Alcohol-Free Pils rises by a marked 8 %

Continuous growth – since the brand was launched onto the market in 1999, 12 years ago – has been Krombacher Alcohol-Free’s success story. There are basically two reasons for this unusual performance: one is of course the outstanding taste, which wins over more and more consumers from year to year; the other is the growing fitness and health trend in our society, which is causing consumers to demand alcohol-free beers, particularly Krombacher Alcohol-Free. The result is impressive. In 2010 Krombacher Alcohol-Free gained 8.0 %, a quantity increase of 19,000 hectolitres. Total output of Krombacher Alcohol Free now stands at 257,000 hectolitres (previous year: 238,000 hl). According to Nielsen this puts Krombacher Alcohol-Free, with a 16.6 % market share, well out in front in the alcohol-free pils segment. The nearest competitor has a market share of 11.5 % Krombacher Alcohol-Free.

Krombacher Radler - a success story of a special kind

Krombacher Radler, a further important product in the Krombacher brand portfolio, is No.1 in the radler segment. Here Krombacher Radler enjoys a market share of 18.6 %, giving it a respectable lead over the nearest brand radler at 6.2 %. With an increase of 9.4 % Krombacher Radler in 2010 returned an almost two-digit growth. In absolute figures this means that in 2010 sales of Krombacher Radler increased by a substantial 32,000 hectolitres to 371,000 hectolitres (previous year: 339,000 hl). Krombacher Alcohol-Free Radler also grew gratifyingly in the year just ended.

Krombacher Weizen - a firmly established favourite in the market

Krombacher Weizen was launched on the market early in 2007 and Krombacher Alcohol-Free Weizen in 2008. Since then both products have established themselves in the market as firm favourites. Competitors’ wheat beers have of course done all they could to maintain their market position, but Krombacher has succeeded in firmly establishing itself in the wheat beer segment. Output of Krombacher Weizen rose by 12,000 hectolitres to 173,000 hectolitres (previous year: 161,000 hl) on 2009. This represents a growth of 7.5 %. Alongside Krombacher Weizen, Krombacher Alcohol-Free Weizen and Krombacher Weizen Dunkel (Krombacher Dark Wheat) also contributed positively to this result.

Cab output down

Products of the Cab brand family achieved a total output of 111,000 hectolitres in 2010 (previous year: 156,000 hl). This represents a decrease of 45,000 hectolitres against the previous year (= 28.8 %).

Krombacher Export on the up

The Krombacher Group’s export business recovered in comparison with the previous year. While currency troubles and the poor state of the world economy caused great difficulties during 2009, 2010 saw a marked recovery. Krombacher Export rose by 7.5 %, that is, 10,000 hectolitres. The export business thus shows a total output of 144,000 hectolitres for 2010 (previous year: 134,000 hl).

Italy, still the largest Krombacher export market, made up the losses of the previous year and again already increased output slightly in 2010. Likewise in the hard fought-for Spanish market we, together with our partners, were again able to increase output by 15.3 %.

Particularly gratifying is the output trend in The Netherlands, where after a restructuring of market activities we can now proudly return a growth of 56.6 %. The Russian market, which was particularly affected by currency fluctuations, improved by 24.7 % and followed up its upward trend, which was unbroken until 2008. South Korea also continued its rapid growth trend of past years and achieved a sensational rise of 37.7 %. Also outstanding were Krombacher exports to Lithuania, Israel, Paraguay, Hungary and Canada, where sales more than doubled and in some cases actually quadrupled. Thanks to the acquisition of new sales markets, such as Chile, Azerbaijan, Andorra and Mexico Krombacher is now already present in 60 countries of the world.

Breakdown by Market:

The Schweppes brand family - guarantee of success in the market

With the acquisition of Schweppes, Orangina, Dr Pepper and other brands in 2006 the Krombacher Group decided to expand the brand and product portfolio in Germany and Austria to include a further mainstay product – outside the beer market. In the area of non-alcoholic soft drinks, particularly in the bitter drinks segment, Schweppes is the market-determining element most widely accepted by consumers. This is reflected by the strong performance which the Schweppes brand family put in in 2010, too. Total output in the year just ended came to 780,000 hectolitres, representing an increase of 4.3 % (=32,000 hl) on 2009. Naturally the classics, Bitter Lemon, Ginger Ale, Tonic Water and Citrus Summer, contributed to this growth, but the successful launch of new Schweppes Sparkling Tea in three flavour variants also gave the brand fresh impetus.

Highly gratifying, too, because of its development potential was the performance put in by the Orangina brand. Orangina increased its sales by 15.2 % and returns an output of 76,000 hectolitres (previous year: 66,000).


Krombach, February 2011

Trends and prospects for 2011

General trends in the German beer market will continue in 2011, too. Demographic trends – declining birth rate and overaging are the operative words here – will continue to bring us a falling per-capita consumption.

The Krombacher Group with its top brands Krombacher and Schweppes demonstrated over the year just ended that it is possible to beat megatrends like these. For this reason we shall hold to our demonstrably successful, long-term and value-oriented brand policy. We shall further invest in our products and brands in order to further increase their quality and attractiveness.

The Krombacher Group will continue to devote its full attention to the most important segment of the beer market, the pils market, in order to further expand the position of the market leader, Krombacher Pils. Investment in the brand, particularly in TV and radio advertising, remains as high as ever. Commitment to presenting and sponsoring will be consistently continued. For the first time in the history of the Krombacher brewery there will be an independent brand campaign specifically for the alcohol-free segment. An independent, strong impetus-giving brand campaign has also been developed for Krombacher Weizen.

In the export sector we anticipate a continuation of the extremely positive sales performance. We shall collaborate closely with our distribution partners to further expand our position in the existing Krombacher export countries and also engage in the opening up of new sales markets.

Trend of output in the Krombacher Group in 2010

Trend of sales revenue in the Krombacher Group in 2010