Food - Oettinger brewery focuses increasingly on non-alcoholic drinks
Due to the difficult situation on the German beer market, the Oettinger brewery now wants to produce more soft drinks. By 2026, the share of non-alcoholic beverages should account for around 40 percent of sales, announced CEO Stefan Blaschak. This is roughly double the current share.
Oettinger will "change from a brewer to a beverage producer", said Blaschak, who took over the management of the family business in the summer, commenting on the new strategy. The export share is also set to increase from the current one third to around half of turnover during this period, as the company reported on Friday.
According to its own figures, Oettinger is one of the largest beverage producers in Germany with a production of around eight million hectoliters. The brewery, founded in 1731, has around 800 employees. In addition to its headquarters in Oettingen, Swabia, it also has breweries in Mönchengladbach in North Rhine-Westphalia and Braunschweig in Lower Saxony.
Oettinger is known for its inexpensive beer. The company traditionally refrains from advertising and supplying the catering trade in order to save costs. The beer market has been stagnating for years, explained Blaschak. "We believe that the zeitgeist is shifting a little."
German beer market has been shrinking for years
Breweries have been struggling with a shrinking beer market in Germany for years. According to the Federal Statistical Office, beer sales in Germany also fell in the first half of 2023 - by 2.9% compared to the same period last year. In contrast, the production of non-alcoholic beer has doubled within ten years.
However, Oetinger's old values should remain. "We say high quality at a fair price," said Blaschak. Oettinger also wants to consciously set itself apart from competitors advertised on television, for example, in the future. "We are certainly almost 60 percent cheaper than the fancy beers."
Last year, Oettinger sold the brewery in Gotha, Thuringia. After production there was initially to be closed due to the "negative development of sales volumes in the beer market", Paulaner from Munich finally took over the site at the turn of the year.
According to the last annual balance sheet published by Oettinger in the Federal Gazette, the company generated sales of just under 324 million euros and a loss of around 3.8 million euros in 2021.
Oettinger Brewery Destatis on beer production Destatis on beer sales
Lesen Sie auch:
- Despite facing challenges in the German beer market, where beer sales have been decreasing for years, the Oettinger brewery based in Bavaria is focusing on expanding its production of non-alcoholic beverages, such as soft drinks.
- With a share of around 40 percent of sales projected for non-alcoholic beverages by 2026, the Oettinger brewery, one of the largest in Germany, will transform itself from a brewery to a beverage producer, according to its CEO Stefan Blaschak.
- While focusing on non-alcoholic beverages, Oettinger Brewery, which is known for its inexpensive beer, still wants to maintain its old values of offering high-quality products at affordable prices.
- As part of this strategy shift, Oettinger aims to boost its export share, increasing it from one third to around half of its turnover, and plans to expand its operations beyond its breweries in Bavaria, North Rhine-Westphalia, and Lower Saxony.
Source: www.stern.de
