In 2009 the company Feldschlösschen achieved an organic net sales growth in the beer category of 2.0% within an adverse economic environment. Yet, even the market leader was unable to completely elude the overall negative trend of the domestic beers on the Swiss market: The volume of Feldschlösschen's Swiss beer brands sank by 2.2%. In 2009 Feldschlösschen was able to gain market shares with the integration of the traditional brands 1664 and Kronenbourg into its portfolio.
With an organic net sales growth of 2.0% in the beer category the company Feldschlösschen held its own in 2009 within an adverse environment. Due to the integration of 1664 and Kronenbourg, the company achieved an overall growth in net sales of 9.9% in the beer category. The two traditional brands joined the Feldschlösschen portfolio at the beginning of 2009 in the course of the international takeover of Scottish & Newcastle by the Carlsberg Group.
Domestic brand beers under pressure
Compared to the previous year the Swiss beer market benefited from the good weather and the high temperatures during April, August and September 2009. These factors contributed considerably to the fact that the volume on the overall market declined by a mere -0.2% compared to the previous ‘Euro 08 year’. However, the entire domestic production declined by -1.9%, whilst the beer imports again increased significantly with +7.2%.
The brand Feldschlösschen was once more able to strengthen its position slightly during the past year. Nevertheless, even Switzerland’s leading brewery was unable to elude the pressure due to the increasing share of low-priced imported beers on the overall market. This has led to a reduction in volume of -2.2% within Feldschlösschen’s wide range of brand beers.
“The annual operating figures for 2009 show that we are on the right path with our strategy. In addition to our comprehensive portfolio of our own beer brands, we also trust in the distribution of selected foreign premium beers” Feldschlösschen’s CEO Thomas Metzger stresses. Feldschlösschen is aiming to further increase its market share, which has been at 44% following the integration of Scottish and Newcastle, during 2010.
The volume of Moussy beer, produced on behalf of the Carlsberg Group, increased once more in 2009. Moussy’s share of Feldschlösschen’s total produced volume has therefore risen to over 20%. The sales markets of the non-alcoholic Moussy beer are primarily located in the Arab states.
Swiss beer market: Challenges and prospects
In 2009 the economic crisis accelerated the trend towards shifting consumption from the catering trade towards the retail trade further. This trend is expected to continue over the coming years. Based on the experiences in various cantons, the Swiss-wide introduction of the smoking ban will put further pressure on the catering trade and therefore also on the breweries. Feldschlösschen plans to trust in innovations, with products such as the recently launched Feldschlösschen Premium, and invest increasingly in its own brands. This way Feldschlösschen supports the consumption within the gastronomy whilst distinguishing its own brands from imported beers.
Feldschlösschen expects 2010 to be another difficult year. The new law on alcohol may well bring further unnecessary regulations that might damage the entire sector. “In 2010 Feldschlösschen will improve its efficiency further and optimise the internal processes“ Feldschlösschen’s CEO Thomas Metzger explains. “This is all the more important as the constant increase of the share of low-cost imported beers on the Swiss market presents a great challenge for us.”
CO2 emission: Reduction targets considerably exceeded
During the past year the Feldschlösschen company reduced its CO2 emissions from fossil fuels considerably, in fact by 6.8%. Therefore Feldschlösschen was able to exceed its set target (-4%) considerably. This pleasing result was reached in spite of the diversification through the brands 1664 and Kronenbourg.
Feldschlösschen was able to reduce its CO2 emissions as early as 2007 and 2008. The company has scheduled further reductions of 4% annually for the coming years. In order to achieve this ambitious target, Feldschlösschen invests in new, environmentally friendly fleet vehicles; in addition it continuously increases the efficiency of its own logistics and trusts in innovative solutions (e.g. thermal recycling of the residual alcohol that accrues during the production of non-alcoholic or alcohol-reduced beers).