Beer market - 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 to some extent."
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, Oettinger's old values should remain. "We say high quality at a fair price," said Blaschak. In the future, Oettinger also wants to consciously set itself apart from competitors advertised on television, for example. "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.
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- Despite the challenges in the German beer market, Oettinger brewery is expanding its production of soft drinks, aiming for a 40% share by 2026.
- As part of its new strategy, Oettinger will transition from a brewer to a beverage producer, with an expected increase in export share to half of turnover.
- Based in Oettingen, Swabia, Known for its affordable beer, Oettinger is one of the largest beverage producers in Germany with around eight million hectoliters of production and around 800 employees.
- Oettinger's focus on non-alcoholic beverages comes as German beer market has been shrinking for years, with decreasing beer sales and a doubling of non-alcoholic beer production within a decade.
- The CEO emphasized that Oettinger's old values of high quality and fair price should remain, positioning themselves against competitor brands advertised heavily on television.
- The brewery also made headlines last year by selling its brewery in Gotha, Thuringia, citing negative sales volumes in the beer market, which later was taken over by Paulaner.
Source: www.stern.de
