Germany: Warsteiner Group on track to become an international beverages group

The Sauerland-based Warsteiner Group is represented in 60 foreign markets that now generate around 30 percent of its turnover. The highest-revenue countries include Argentina, Italy, the Netherlands, the USA and Canada, as well as Cameroon. Since the early ‘90s, the group has been able to increase the entire spectrum of all its international activities from approximately 15 million euros to 200,000 hectolitres. The main contribution to this international success has been the sustained strategic focus that is essentially based on three pillars: exports of the flagship WARSTEINER Premium Verum, the company’s own breweries and shareholdings abroad and operating in association with foreign breweries, the company recently released.

Three pillars to international success

Exports, the first pillar, stood at around 800,000 hectolitres in 2005, which represents a fivefold increase compared to 1990. The foundation of the export business is the company’s own sales organizations, such as Warsteiner Italia, and since 1998, it has contributed towards elevating the position of the private Westphalian brewery to Italy’s most important beer importer with sales of over 200,000 hectolitres. From 1981, importers have also increased the consumption of Warsteiner in around 60 other countries including Greece, the USA, and Canada. The Warsteiner sales organizations are complemented by the increasingly closely knit network of sales partnerships.

The breweries owned by the Warsteiner Group, spread across many different continents and form the basis of the second pillar. Back in 1994, the traditional company founded the Casa Isenbeck brewery in Argentina. In this South American country, Isenbeck stands for the German purity law and outstanding beer quality. With an output of one million hectolitres in just ten years, the brand achieved a market share of 7% and as much as 13% in Greater Buenos Aires area alone. A new bottling plant was put into operation in November 2004 increasing capacity to 1.5 million hectolitres. Since 1999 Warsteiner has actually been produced in Argentina, too. Overall, Argentina is the Sauerland company’s biggest foreign market with an annual turnover of Euros 29 million. In Africa the traditional company holds shares in breweries in Cameroon, Gambia and Nigeria. Also, the Warsteiner Group has a foothold in the Pacific zone and Caribbean with breweries in the Solomon Islands and in St. Vincent respectively.

Finally, the third pillar consists of collaboration with associate breweries, who, have license agreements to produce the premium Westphalia pilsner in accordance with the German purity laws on various continents. The Premium Verum brand is brewed in Moscow, Panama City and in Mauritius. Also there is a sales cooperation with the Dutch brewery Grolsch, incorporating Western Europe, which commenced in 2004. The brewery also operates in association with the EFES International beverages group in Russia. Through these active sales structures, Italy, the Netherlands and Spain have become the most important European export markets for Sauerland’s premium brewery.

Globalization and product expansion

Warsteiner is not only focussing on building its position as the leading proponent of German beer culture abroad, but also developing into an international beverages group with an extensive product portfolio. Entry into the Argentinean wine trade can be cited as one example of the new parallel corporate strategy of ‘globalization and product expansion’. By investing ten million US dollars in wine producer, Bodegas y Viñedas Orfila, the company has now entered another growth market. Sales will initially concentrate on the Argentinean wine market, which is characterized by favourable growth prospects and sales and distribution structures similar to those of the beer market. Later on, the wines will be positioned globally via the brewery’s excellent international distribution network. With growth rates of 35 %, Argentinean wine exports have experienced a veritable boom over recent years and Warsteiner will be a part of this in the future.

The right drink for any occasion all over the world

The Warsteiner brewery is achieving healthy growth and has positioned itself superbly amongst the tightening competition owing to its premium strategy, sustained investments throughout the entire value chain and international partnerships. The Warsteiner Group sees great potential predominantly in Eastern Europe, South America and Asia, which will make it possible for the key booming hotspots of Beijing, Shanghai, Hong Kong and Singapore to experience golden moments with Warsteiner soon. “In the future, we want to offer the discerning bar and restaurant trade a complete portfolio of first-class beverages for every occasion and every taste”, says Dr. Gustavo Möller-Hergt, summing up the Warsteiner Group’s goals.

Founded in 1753, the Warsteiner Brewery is one of Germany’s largest private breweries. Its flagship is the Warsteiner Premium Verum brand, which is one of the most popular beers across Germany. In addition, the product portfolio includes the beer mixes Warsteiner Lemon, Cola and Orange, as well as the reduced-calorie HiLight beer.

Apart from the Warsteiner Brewery, the Haus Cramer Group also owns Paderborner Brauerei Haus Cramer KG (Paderborner, Isenbeck, Weissenburger) and Casa Isenbeck in Argentina, as well as interests in König Ludwig GmbH & Co. KG, Schlossbrauerei Kaltenberg (König Ludwig Dunkel, Prinzregent Luitpold Weissbier) and the Frankenheim Brewery (Frankenheim Alt, Frankenheim blue, Frankenheim lemon) in Düsseldorf, and breweries in Cameroon, Gambia and Nigeria.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .