C. & A. Veltins brewery satisfied with annual results - Strongest sales year on the occasion of the brewery's 200th anniversary honours value-oriented strategy

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 hectolitres fell by 2.9 % after months of weak consumption, turnover rose strongly by 5.3 % to 441 million euros. "Our value-orientated 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 in retail weakened and the catering 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 finalising the 420 million euro investment offensive - now we are reaping the benefits of efficiency through high-tech," said Michael Huber. He announced investments totalling 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 hectolitres 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 hectolitres of volume were lost within a decade from 2007 to 2017 alone, the same volume 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 hectolitres, the traditional Grevensteiner company continued to outperform the market in the 2023 financial year. The Veltins Pilsener brand achieved an output of 2.315 million hectolitres and thus successfully fought for market share in the phalanx of top premium brands. 199,200 hectolitres were contributed to the output result by the supplementary varieties with shandies, non-alcoholic beers and draught fizzy drinks. The C. & A. Veltins brewery recorded pleasing growth in the fruity-alcohol-free Veltins Fassbrause range. With an increase of +7.6 %, the brand continues to grow in popularity. The now six different varieties fulfil 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 trend flavour V+ Sprizz proved to be the main sales drivers. In line with the general market trend, the Grevensteiner brand suffered a loss of 18.8 %.

Pülleken on tap 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 hectolitres in its fourth year of sales. Pülleken pale ale is now one of the top 5 pale beer brands in the retail sector and is available in 18,000 outlets across Germany. The brewery C. & A. Veltins also made a significant contribution to brand growth by launching a new beer, Pülleken vom Fass, on the taps in the catering trade. Since late summer 2023, the palatable pale ale 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 distribution channel of the restaurant trade," says Dr Volker Kuhl, Managing Director Marketing/Sales. The draught beer business increased by 2.9% across all brands and achieved a fulfilment 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 to the national catering trade with 13,200 associated establishments. The C. & A. Veltins brewery continues to draw its stable strength from the North Rhine-Westphalian beer market, which is of key importance for market expansion throughout Germany.

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 breweries are becoming justifiably nervous in view of the industry-wide sales losses. "In many places, revenues have collapsed dramatically - the room for manoeuvre will increase dramatically", summarised 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-orientated 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."