E-Malt.com News article: 2766

Germany: The North German company, Holsten Group, which was purchased in March by the international brewery Carlsberg A/S, announced on June 8 that it would concentrate in future on the beer trade in North and East Germany. That’s where the breweries of the group are located, in Hamburg, Lübz, Brunswick, Dresden and Görlitz. That’s where the brands like Holsten, Astra, Lübzer and Feldschlößchen have high market shares, which need to be further expanded.

The Holsten subsidiaries Hansa-Brunnen, König-Brauerei and Licher Privatbrauerei, which are active beyond the beer trade or the Northeast region, are being, respectively will be sold. They made up a considerable part of the former Holsten Group, accounting for around 42% of sales in 2003, with equivalent high expenses for cooperation and administration. These administrative functions and positions will be eliminated by the sales. In future, this will tie up fewer resources in these sectors, which will thus become available to strengthen the Holsten brands and to develop the Carlsberg brand within Germany.

The foreign business of Holsten will be restructured and expanded. The Hamburg-based company will use the international marketing organisation of Carlsberg, the fifth largest brewery corporation worldwide, which sells beer in over 140 countries. Following on from Carlsberg and Tuborg, Holsten will be the third brand to be marketed internationally by Carlsberg A/S.

The adjustment of the Holsten structure with regard to its domestic and foreign business will result in the downsizing of its staffing requirement primarily in Hamburg. This will affect 134 members of staff from amongst the 765 permanent employees on April 1st. Just 12 jobs will be lost (from 757) in the other four breweries of the Group in Germany. It is planned to transfer those affected to an employment company, who will provide them with further qualifications and will assist them in finding new jobs.

In the United Kingdom, the distribution of Holsten Beer, which has been managed for decades by a Holsten marketing subsidiary, will be transferred to the considerably larger firm of Carlsberg UK. The company, which is almost 20 times stronger where sales are concerned, has been marketing Holsten Pils for years to the catering trade in the United Kingdom, and will expand the sales of the Holsten brands. The Holsten subsidiary, Holsten (UK) Ltd., with its 63 employees, will cease trading on July 2nd.

Through the restructuring of its foreign and domestic business, the Holsten Brewery is utilizing the worldwide presence of its new parent company and is releasing funds for investments in its core North and East German markets. It is thus preparing itself for the challenges arising from developments on the beer market, which are characterised in Germany in the medium-term by a downturn in sales of 1% and falling margins.

“We are shifting our funds around, are reducing our administrative costs and are thus investing more in the market”, said Wolfgang Burgard, the Chairman of the Board of the Holsten-Brauerei AG since March. “We will thus be able to develop and further strengthen our brands, Holsten, Lübzer, Feldschlößchen, Astra and Carlsberg as the premium international brand.”

The Hamburg-based company is reviewing additional projects in the sectors of logistics, servicing and general services for the possibilities of more flexible strategies, so as to be able to more rapidly adapt and react to a market that will be even more fiercely contested in future. Wolfgang Burgard: „Constant in the face of change, this applied not only during the 125-year history of the Holsten Brewery, but also applies for its future.”


10 June, 2004