Despite facing the possibility of being removed from German supermarkets, the Krombacher Group, a major German beverage company, reported stable business performance in 2023. This was due to its diverse product lineup and strategic focus on consumer spending. Despite a slight decrease of 0.1% in total production, amounting to 7.6 million hectolitres, the company’s main brand, Krombacher, saw a modest decline of 0.3% to 5.7 million hectolitres. However, this performance still exceeded the industry average, demonstrating Krombacher’s resilience and ability to adapt in a challenging market.
Growth Driven by Non-Alcoholic Drinks
Non-alcoholic beverages, which make up approximately 40% of the Group’s portfolio, experienced a 1% increase in output to 1.6 million hectolitres. This includes popular brands like Schweppes, Orangina, and Dr Pepper. This rise reflects the growing consumer preference for healthier, non-alcoholic alternatives, a trend that Krombacher has successfully capitalized on.
Strong Performance of Key Brands
Krombacher Pils, one of the company’s flagship products, achieved a record market share of over 11%, solidifying its position in the Pils beer segment. Additionally, the company saw growth in the catering, events, and export sectors. Another standout performer was Krombacher NaturRadler, introduced in 2022, which experienced significant sales growth, indicating its popularity among consumers.
Future Plans and Strategy
In 2024, Krombacher plans to expand its non-alcoholic offerings with two new products: Krombacher NaturRadler 0.0%, an alcohol-free variant, and Krombacher AlmRadler, a collaboration with Austrian brand Almdudler. Ralph Zimmerer, the company’s Marketing Managing Director, attributes its success to its strong brand portfolio and a strategy that emphasizes prudent consumer spending during times of high inflation. Looking ahead, Krombacher aims to “recharge its brands” to ensure a consistent consumer experience across all channels. It also plans to introduce a wider variety of flavors to appeal to a broader audience and diversify its sources of revenue.
