Brewery C. & A. Veltins satisfied with half-year results - Veltins gives new gastro impulse and introduces Pülleken in kegs

After months of weak consumption, the brewery C. & A. Veltins, Meschede-Grevenstein, lost slightly in volume, as expected, but nevertheless continued the pleasing momentum of recent years with the second-highest half-year output. The output of 1.67 million hl fell by only 1.8%, while the Pülleken was able to continue to take advantage of the high market demand with an increase of 5.5%. To give the catering trade a new impulse, Pülleken will be available fresh from the barrel for the first time from September. Above all, the months of March to May had caused problems for breweries throughout Germany because they did not develop nearly the sales strength of the previous year. "While the beer market is weakening due to a lack of consumer demand, we are using this year to consolidate," said Veltins general manager Michael Huber, summing up the first half of the year. Meanwhile, the focus is on the future. According to the traditional brewer from the Sauerland region, the German brewing industry still has the biggest investment offensive of the next few years ahead of it with the energy turnaround. Veltins believes it is well capitalised to handle the double-digit million sums over the next ten years.

Keg beer business grows by 9.5 percent
The declining propensity to consume and a weak spring business were particularly noticeable in the retail sector. According to Veltins' assessment, the tiresome discussion about the "heating law" and the effects of inflation have clearly dampened the spending propensity of people in the country. Even the otherwise strong Easter business was unable to elicit any sales impulse this year. The bottled beer business weakened accordingly, while the draught beer business still grew by 9.5% and reached a fulfilment rate of 89% with 212,680 hl compared to 2019. The C. & A. Veltins brewery is confident that after a pleasing growth in draught beer, the gastronomy and event business will continue to gain momentum. For this reason, Veltins will introduce a new draught beer after many years. Thus, at the request of restaurateurs and consumers, the pale Pülleken will be coming to the catering trade as a draught beer in September. "We will continue our investment power in the gastronomy with undiminished intensity despite the structural changes," announced Dr Volker Kuhl, Managing Director Marketing/Sales. "Business at the counter is both a tradition of our company and a passion. The solid anchoring in the gastronomy and traditional event business are stable pillars supported by a clear value-oriented premium philosophy."

Innovative beer mix V+ made a revival
After the strong sales in 2022, the tailwind of the previous years was carried over. In view of the weak trade demand, the Veltins brand declined by -3.1%, as expected, while V+ made a revival. With an increase of 7.9%, the innovative beer mix continues to be on a growth course. Above all, the event business with very good visitor numbers in the first half of the year helped. The C. & A. Veltins brewery was able to take advantage of the market dynamics for beer specialities in the first half of the year and grow by 5.5% to 130,870 hl with its pale Pülleken. Fassbrause increased by 11.8% and contributed 43,120 hl to the half-year result, while the Grevensteiner brand lost -16.3% in line with the product trend.

Political consumer uncertainty has left its mark
The premium brewer from Grevenstein in the Sauerland region is still in good spirits after continuous growth over the past decade. "The slight decline in output was foreseeable and planned for - the unfortunate general conditions of political consumer uncertainty and inflation have left their mark," said Veltins general manager Michael Huber. The private brewery, which celebrates its 200th anniversary next year, consciously acts with a steady hand and is therefore appreciated by consumers, but also by partners in trade and gastronomy. In the meantime, the expectations for the business development in the second half of the year are subdued according to the assessment of Veltins' general manager Michael Huber. The discrepancy between actual and perceived inflation shows how difficult the mood among consumers is. "Politicians have to ask themselves why people's perceived inflation is three times higher than the inflation rate measured in reality. This has a lot to do with a lack of confidence and leads to uncertainty - and that is precisely what an emotional product like beer certainly suffers from," says Huber. A fundamental recovery of the sales situation by the end of the year is unrealistic, so the beer market is likely to close with a loss in volume.

Michael Huber: "Our claim and goal is climate neutrality".
According to the Veltins Chief Representative, there is no doubt that the brewing industry is facing the biggest investments in the next few years. Climate neutrality and the energy turnaround will require considerable investments. Michael Huber: "For the C. & A. Veltins brewery alone, we expect investments in the high double-digit millions over the next ten years. We want to achieve climate neutrality and make our contribution to it - that is our aspiration and our next big goal." New technologies, especially in energy storage, are necessary, he said. The C. & A. Veltins brewery welcomes the tax reform law announced by the German government, which promises tax relief for investments in new climate technologies. At the same time, with regard to the brewing industry, doubts are growing as to whether this sector will also succeed in taking the large number of companies on the climate-neutral path. "Due to a lack of profitability and a simultaneous investment backlog, there will no longer be a viable economic basis in many places for equipping brewhouses and other plant areas with new technology," the Veltins general representative points out. The sandwich scenario of cost pressure and insufficient pricing does not only affect low-yield microbreweries, but also the business model of producing low-margin, low-price beers. The fact that Berlin politics is currently dangerously firing the fuse in several areas is also made clear by the Drug Commissioner Blienert again and again in the last few weeks. "The drug commissioner is desperately looking for a trophy to turn his self-accelerated discussion on advertising bans into a success. Whoever attacks a naming-right of the Veltins Arena exposes himself to the accusation of sheer populism. We expect more preventive work from the federal government!" Huber said verbatim.