C. & A. Veltins Brewery: Strongest financial year in terms of turnover on the occasion of the brewery's 200th anniversary

Brewery sees itself equipped for energy transformation

23-Jan-2024

In the 200th year of its existence, the C. & A. Veltins brewery reports the highest turnover in the company's history.

Brauerei C. & A. VELTINS GmbH & Co. KG / Bernd Thissen

In its 200th year of existence, the C. & A. Veltins brewery in Meschede-Grevenstein can look back on the strongest sales year in the company's history. While the output of 3.26 million hl fell by 2.9 % after months of weak consumption, turnover increased strongly by 5.3 % to 441 million euros. "Our value-oriented growth strategy allows our traditional family brewery to look to the future with confidence", said Veltins Chief Representative Michael Huber at the presentation of the annual figures. The draught beer business in the catering trade and at events increased by 2.9 %, while the success story of the pale Püllekens continued with growth of 6.6 %. And even the trendy V+ beer mix grew by 4.9%. While the beer market weakened in the retail sector and the food service industry had to cope with structural changes, the traditional Sauerland-based company believes it is well positioned in both distribution channels. "We have made the brewery fit for the future by completing the 420 million euro investment offensive - now we are reaping the benefits of efficiency through high-tech," said Michael Huber. He announced investments of a further 90 million euros for the switch to renewable energies by 2030. "It is imperative that we make our contribution to climate security for future generations."

Market losses in the brewing industry have accelerated

Weak consumption as a result of political turmoil and inflation hit the German beer market to an historic extent in 2023. According to estimates by the C. & A. Veltins brewery, the entire brewing industry lost 3.5 million hectoliters of market volume in just twelve months - more than in any previous year. The speed of the market losses is a cause for concern: while 10 million hl of volume was lost within a decade from 2007 to 2017 alone, the same amount was lost in the previous six years alone. Dr. Volker Kuhl, Managing Director Marketing/Sales at the C. & A. Veltins brewery: "The changing demographics are having a greater impact than before with the reduction in the consumer-relevant target group and are leading to even more intense competition." The C. & A. Veltins brewery considers itself to be well positioned in the face of fierce competition. With an output of 3.26 million hl, the traditional Grevensteiner company remained above market level in the 2023 financial year. The Veltins Pilsener brand achieved an output of 2.315 million hl and thus successfully fought for market share in the phalanx of top premium brands. 199,200 hl were contributed to the output result by the supplementary varieties with shandy, non-alcoholic beers and draft fizzy drinks. The C. & A. Veltins brewery recorded pleasing growth in the fruity, non-alcoholic Veltins Fassbrause range. With an increase of +7.6 %, the brand continues to grow in popularity. The now six different varieties satisfy numerous taste preferences and offer retailers and consumers a broad selection for all those who prefer to avoid classic soft drinks and juices, but at the same time prefer fruity refreshments. The innovative beer mix brand V+ experienced a pleasing revival in the past financial year. With a volume increase of +4.9%, the prospering event business with high visitor numbers and the new impetus provided by the trendy V+ Sprizz flavor proved to be the main sales drivers. In line with the general market trend, the Grevensteiner brand suffered a loss of 18.8 %.

Pülleken vom Fass was able to grow from a standing start

The trend towards full-bodied, less hoppy beers was noticeable in the 2023 financial year for pale Pülleken, which grew by +6.6% to 272,800 hl in its fourth year of sales. Pale Pülleken is now one of the top 5 pale beer brands in the trade and is available in 18,000 outlets across Germany. The C. & A. Veltins brewery's move to bring a new beer to the taps of restaurants with Pülleken vom Fass also made a significant contribution to brand growth. Since late summer 2023, the palatable light beer has been flowing directly from the barrel into the glass and has since generated additional gastronomic impetus in 3,000 establishments. "The demand from restaurants for a new draught beer is an unmistakable sign that there is certainly encouraging momentum in the traditional restaurant distribution channel," says Dr. Volker Kuhl, Managing Director Marketing/Sales. The draught beer business increased by 2.9% across all brands and achieved a fulfillment rate of 87% with 456,800 hl. This market recovery also confirms the gastronomic activities of the traditional Grevensteiner brewery, which continues to demonstrate a high level of commitment in the national gastronomy sector with 13,200 associated establishments. The C. & A. Veltins brewery continues to draw its stable strength from the North Rhine-Westphalian beer market, which plays a key role in Germany-wide market expansion. Dr. Volker Kuhl: "There is no question that the music in the national beer market is preferably played by the top premium brands. That's where the trade sees the speed of rotation, that's where it's possible to calculate shelf space efficiency straight away. And this is where it pays off for us to provide broad support."

Soon to be a threat for many regional brewers

The C. & A. Veltins brewery sees the need to transition its energy-intensive brewing operations to a climate-neutral future as the order of the day. This means that the entire brewing industry is facing the biggest investments of the current decade. "It is already foreseeable today that the costly transformation to renewable energies will overburden many breweries financially and become a matter of survival. Those without financial strength unfortunately have no future." The C. & A. Veltins brewery is facing investments of 90 million euros in wind power, photovoltaics and energy storage systems at its headquarters in Grevenstein alone. Huber: "We will have to manage the essentials by 2030." It is the right and timely way to contribute to climate neutrality and the energy transition - also as a contribution to overall social responsibility. According to observations by the C. & A. Veltins brewery, many companies in the brewing industry are becoming justifiably nervous in view of the industry-wide loss of sales. "In many places, revenues have collapsed dramatically - the room for maneuver will increase dramatically", summarized Veltins General Representative Michael Huber. "The knocking signals from individual suppliers are getting louder. The order of the day now is to concentrate on the essentials." In the 200th year of its existence, the C. & A. Veltins brewery considers itself well positioned for the structural changes in the brewing industry. "We will continue our value-oriented corporate and marketing policy, come what may. We are concerned with long-term market acceptance and location and job security," says Michael Huber. "We are not adventurers, but solid brewers who understand their craft and the market."

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

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