Krombacher Group delivers stable result despite difficult market environment

The Krombacher Group also felt the effects of the generally subdued consumer sentiment in 2023, primarily due to high inflation. Nevertheless, the Siegerland-based company presented a satisfactory annual result. Total output fell only slightly to a total of 7.628 million hectolitres (hl). Compared to the previous year, this is a slight decrease of 0.1 %. The Krombacher umbrella brand performed significantly better than the industry average. At 5.739 million hectolitres, the decline here was only 0.3%. In contrast, the non-alcoholic brand association around Schweppes grew slightly in 2023, namely by 1% to 1.608 million hectolitres. The share of non-alcoholic beverages within the Krombacher Group is around 40%.

Krombacher Group delivers stable result despite difficult market environment
© Krombacher Group
Source:  Company news

"In 2023, high inflation made people think very carefully about which products and brands they wanted to spend their money on. We are therefore particularly pleased that we were also able to gain significant market share with our brands last year. Our committed employees, our high variety and product quality as well as the modernity and relevance of our brands are the constant guarantors of success," says Ralph Zimmerer, Managing Director Marketing.

Krombacher umbrella brand further expands its strong market position
People's favourite beer in Germany continues to be a naturally fresh Krombacher. Despite all adversity, the market share of Krombacher Pils was further increased to a record level of over 11%. Krombacher vom Fass also had a strong year in 2023 in the catering trade, at events and in exports and continued to grow.

The wide range of varieties under the Krombacher umbrella brand also provided important impetus. For example, Krombacher NaturRadler, which was launched in 2022, also performed very well last year and continued to gain significant sales. Due to the very positive response and high demand from the market, the Krombacher NaturRadler range will be expanded in 2024 to include the non-alcoholic variant Krombacher NaturRadler o.0%. Another new addition to the successful range of Krombacher mixed beer beverages will also be added in the coming weeks: Krombacher AlmRadler. In cooperation with the Austrian cult brand Almdudler, a unique and original beer mix has been created that will be particularly refreshing in Germany in 2024.

Another non-alcoholic alternative from Krombach impressed across the board in 2023: Krombacher Spezi, based on the original Spezi recipe from 1965, was a hit with many users right from the start. The fruity, sparkling flavour and the modern, vibrant packaging and product design generated a very positive response from the market in its debut year.

Schweppes sets new impulses
Schweppes was able to successfully withstand the difficult market environment. The Schweppes, Orangina and Dr Pepper brands marketed by the Krombacher Group in Germany and Austria recorded a combined increase of 1% to a total output of 1.608 million hectolitres. Contrary to the general trend, Orangina and Dr Pepper both achieved pleasing growth.

Schweppes products continue to enjoy great popularity and ensure continued market leadership in the bitter drinks segment. However, the slowly weakening gin boom is also becoming noticeable for the No. 1 filler brand. On the other hand, Schweppes is benefiting from the pure enjoyment of its products and, in the mix, from the trend towards aperitif drinks with less alcohol. The sensational success story of Schweppes Original Wild Berry continued in 2023. Schweppes Virgin Mojito and Schweppes White Peach were also absolutely convincing in their second year on the market. The aperitif trend will therefore be continued by Schweppes in 2024 with another novelty: Schweppes Pomegranate.

Orangina continues on its successful path in Germany. Despite the difficult environment and a rather mixed summer, the cult brand bucked the general trend and achieved pleasing growth in 2023. Orangina has firmly established itself in the premium lemonade segment and continues to gain fans.

The world's oldest soft drinks brand also had a strong year in 2023. Dr Pepper continues to grow very dynamically in this country. With its special flavour and special promotions, such as the individual limited editions for Halloween or in the context of American football, Dr Pepper is appealing to more and more consumers.

The distribution and marketing of Schweppes Germany products is partly handled by Drinks & More GmbH & Co. KG, a wholly owned subsidiary of the Krombacher brewery.

Recharging strong brands and continuing to grow with a variety of flavours
"With our strong brand portfolio in both the beer and non-alcoholic beverage segments, we are ideally positioned for the future. This was also demonstrated by the past year, which was very challenging overall," says Ralph Zimmerer. "In 2024, we will work intensively as a team to recharge our brands from the core in a new and contemporary way, to make them an even more consistent experience for consumers across all consumer touchpoint channels and to generate real growth impetus through consumer-centred innovations in the market. We will drive forward our variety of flavours within the Krombacher Group and surprise our consumers with exciting new product ideas."

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