Investments propel Royal Swinkels Family Brewers to a new sales record

18-04-2019

2018 characterised by growth and collaboration

Lieshout – Royal Swinkels Family Brewers achieved record sales for the fourth year in a row where investments in takeovers and strategic collaborations again played a role. The net turnover amounted to EUR 713.1 million, an increase of 8.2 percent compared to 2017. The 26 brands of the company combined sold eight million hectolitres beer and 856,000 hectolitres soft drinks in the past year in which the operating result increased by almost a quarter (23.6%) from EUR 41.1 million to EUR 53.8 million.

Jan-Renier Swinkels, Chairman of the Board, resigned since yesterday, looks back on 2018 with great satisfaction, as it was the year in which Bavaria N.V. continued as Swinkels Family Brewers. "After a year of brewing and building we also managed to maintain the increasing line in 2018 in respect of turnover and operating result and again made great progress in the implementation of our strategy. Our new trade name gives a better explanation of who we are. We are a family business and we are beer brewers. The name also stresses that we are more than just our beer brand Bavaria, as we now have seven breweries, two malting plants and 26 brands. In this respect the name better fits our strategy and emphasises the width of our portfolio both nationally and internationally," shared Swinkels.

2018 characterised by growth and collaborations
The turnover increase of 8.2% in 2018 can be largely attributed to the capacity expansions at Holland Malt and brewery Habesha. In addition, sales of the brands 8.6, La Trappe, Rodenbach and Cornet in particular increased. The home market again presented the Bavaria brand with a challenge this year. At the same time we invested heavily in the return of the slogan 'Zo. Nu eerst een Bavaria’ and the recently announced new design of the Bavaria beer bottles in the Netherlands. Bavaria managed to draw national attention in 2018 with the carnival campaign #carnavalvrij, led by Sjefke Vaeren.

An important moment in time took place in October, with the takeover of Bier&cO, one of Europe's largest importers of specialty beers. We also entered into collaborations with breweries Maximus in Utrecht and Oersoep in Nijmegen in 2018. Where the beers of the two breweries are concerned, Royal Swinkels Family Brewers now handles the distribution to the on-trade sector, supermarkets and liquor stores. Through the takeover of Bier&cO and the collaborations with breweries Maximus and Oersoep, the company gives further substance to its strategy of being a broad portfolio player with local relevance.

New organisational structure that encourages innovation
Royal Swinkels Family Brewers adapted its organisational structure last year and now operates on the basis of business units, thereby moving control to a lower level allowing for more local decision-making. This increases the company's innovative capacity and results in a quicker introduction of new products to the market. In order to improve the internal innovation process, the Centre of Innovation was established in 2018. "In the past year we were looking for new ways to respond to the needs of consumers in an even better way," says Swinkels.

The year 2018 was also the year in which Royal Swinkels Family Brewers substantially expanded its range of non-alcoholic products with the introduction of Palm 0.0, Estaminet 0.0% and two new Bavaria 0.0% Malt Drink flavours. Recently, Bavaria 0.0 IPA was added to that list. By offering a larger selection of non-alcoholic products, the company complies with the growing demand of those consumers who occasionally want to enjoy a non-alcoholic beer as well. Here the family capitalised on its yearlong leading position in the non-alcoholic beer market.

Attention for sustainability
The goal of Royal Swinkels Family Brewers is to pass on the company to the next generation in an even better state than it is today. In short this means; financially healthy, with happy people and with the least possible negative impact on the environment. "This is why we set ourselves the target of doing 50% circular business by 2020. We do this in three different ways; by making our procurement more sustainable, by being more aware of our production process and by reusing more materials. In this way we can instigate the evolution from a linear to a circular production process," according to Swinkels. "We will already see new initiatives on this topic in 2019, such as our collaboration with TU Eindhoven, where iron powder is burnt to generate heat."

300 years of brewery Bavaria
"It goes without saying that 2019 is an important year for us as we have the privilege of celebrating brewery Bavaria's 300th anniversary. It fills us with great pride that by receiving the Royal designation we can now refer to ourselves as Royal Swinkels Family Brewers. The visit of Her Majesty Queen Máxima to our brewery was a special moment and the ultimate kick-off of our jubilee year. It will not surprise you that we toasted this glorious fact with the entire family, our staff and business contacts during various celebrations."

"It makes it the perfect moment for me to pass the baton of Chairman of the Board on to Peer Swinkels, who is now CEO of this beautiful family business as of yesterday," concludes Jan-Renier Swinkels.

For our annual report of 2018, click here.