Belgian Brewery Palm Sells Less Beer July 19 2015, 0 Comments
Further evidence that the boring beer sector is condensing, this time from Belgium. Pushed on taste by the emerging craft brewers' ability to entertain those who prefer their beer to be entertaining and pushed on price by the bulk producers ability to undercut for those who don't, brewers like Palm are starting to learn the hard way that they will have to go more daring in their products.
From: De Standaard 16 July 2015
Palm Sells Less Beer
Palm Brewery is struggling, especially with the declining popularity of the eponymous brand. For the third consecutive year the company from Steenhuffel has made a loss. New beers and higher exports are hoped to turn the tide.
This year, the loss has increased to €1,3 million, writes the entrepreneurs madeinbrabant website.
Palm Breweries is highly active in the segment of thirst-quenching beers: white and amber beers of the same brand and specialty beers such as Rodenbach or Oude Geuze Boon. In this segment of thirst-quenching beers sales dropped back to 308 988 hectoliters, less than half a decade ago.
For the third year running Palm is looking at a loss, from €392,000 in 2013 to more than three times that a year later on a turnover that decreased in 2014 by 0.5% to €52,5 million.
Palm wants to reverse the downward spiral by getting exports back on track. In terms of export Palm is down after ten years of limited results, while the Belgian competitors thrive in those markets. The brewery now goes for France and China.
A second remedy is the market of special beers, which are still growing. The proportion of the heavier beers like Rodenbach Grand Cru, Cornet and Steenbrugge Tripel in the total volume climbed by 7% in 2013 to an estimated 18% this year. This increase, however, does not compensate for the decline of the Palm brand, still the most sold in volume.