Ireland & Germany: Rye River Brewing Company receives “multi-million euro” investment from German brewer Warsteiner
Rye River Brewing Company, a Co Kildare-based independent retail craft brewery, has received a “multi-million euro” investment from family-owned German brewer Warsteiner, Independent.ie reported on November 27.
The investment will see the ninth-generation family-owned German brewery acquire a minority stake in Rye River. It will also provide capital and operational support, focusing on accelerating the Celbridge brewery’s growth in export markets through access to Warsteiner’s well-established distribution channels and international networks.
Tom Cronin, founder and managing director of Rye River, welcomed the investment and new partnership with the German brewer, adding that sustained investment in production, quality, capacity and operations had already been crucial for the company.
“We have already enjoyed success in international markets but remain hugely ambitious to grow our export markets further,” he said. “The investment from Warsteiner will not only allow us to bring forward a number of capital projects but also gives us access to significant distribution channels and networks which will accelerate export growth.
“The Rye River team is hugely excited about the opportunity of working with a business that shares the values that have underpinned our success to date. Warsteiner is an independent family business with a long tradition of brewing excellence and is a perfect fit to support Rye River Brewing Company in its next stage of development.”
In previous reports, Cronin has said that Rye River was seeking to raise up to €3.5m to help it grow internationally.
Catharina Cramer, owner of the Warsteiner Group, said the two companies shared an emphasis on quality, which was a crucial factor in the decision to partner with Rye River.
Helmut Hörz, chief executive and chief financial officer and chairman of the management board of the Warsteiner Group, said the investment was part of the company’s future growth.
“Our acquisition of a minority stake in the Rye River Brewing Company is in keeping with our shared long-term goals. While only in its tenth year of business, Rye River Brewing Company has already built a world-class craft brewery in Ireland with award-winning stout, lager, Irish ale and IPA products and strong brands. We look forward to supporting the company’s management and brewery team in accelerating its growth in international markets through this strategic investment partnership.”
Hörz has also been appointed as a non-executive director with Rye River.
Since its establishment in 2013, Rye River has completed various investment programmes.
Last year, Rye River moved to a 24-hour seven days a week shift brewing pattern, which expanded production capacity by 25pc to satisfy current demand and to facilitate future volume growth. The introduction of a new packaging line costing €1.3m is also currently in motion.
The new investment from Warsteiner Group is also set to enable the business to add to its capital investment programme, previously reported as being worth €2.5m, in addition to brewing, packaging and warehousing projects for the remainder of 2022 and throughout next year.
The completion of this latest funding round follows the publication of Rye River’s 2021 annual results.
The results showed earnings before interest, taxes, depreciation, and amortisation of €449,222. Total revenue for the year grew by 6.2pc from €7.1m in 2020 to over €7.5m during 2021 despite significant challenges in domestic and international markets.
The company reported that an operating profit was maintained, although it was at a lower level of just over €52,000. It said this was mainly due to increased operating expenses.
Now employing 62 people, Rye River Brewing Company further strengthened its position as a category leader within the Irish craft beer sector in 2021. Rye River said AC Nielsen data had confirmed that Rye River had four products in the top-15 selling beers in the Irish Retail market in 2021, and its Double IPA was the number-one selling Irish craft beer in the retail channel.
The Warsteiner Group, founded in 1753, is represented in more than 50 countries worldwide. According to its website, sales in 2019 amounted to about €400m, employing around 1,100 people worldwide.
European Supermarket Magazine reported that Warsteiner brewery had a marginal decline in sales of around 1.1pc in 2021 compared with the previous year.
The year was marked by lockdowns and numerous cancelled events, due to the pandemic.
"Given the extremely difficult economic circumstances, this is definitely a success for our company," Hörz said.
Beer sales in Germany witnessed a 2.7pc year-on-year decline in the first half of 2021, according to data from Germany’s Federal Statistical Office Destatis.
As well as the Rye River brand, the Co Kildare brewer is behind the Crafty Brewing Company for Lidl, Grafters, which is sold in Dunnes, and Solas, sold in Tesco. It also created the McGargles brand.
28 November, 2022
