Heineken and Carlsberg to push craft beer brands

Craft beers or rather beers from microbreweries are becoming increasingly popular in France. This phenomenon has come to the attention of France’s two major brewers, Heineken and Kronenbourg (owned by Carlsberg), which enjoy market shares of 30 percent and 29 percent respectively. AB-InBev has about 10 percent of the market through imports only.

According to reports, the beer market in France rose 3 percent in 2015 to 20 million hl. Part of this increase is due to the rising popularity of craft beers. In 2015 there were about 850 microbreweries up from 590 a year earlier.

Though only accounting for 3 percent of the French market, these beers enjoy exponential sales increases, especially since many of the microbreweries now offer a wide range of beer styles, including good tasting lagers, which often are commissioned in either Belgium or Germany but then sold under a French micro’s label, insiders say.

What is drawing Heineken (with brands like Pelforth, Desperados and Fischer amongst others) and Kronenbourg (Kronenbourg brands, 1664, Grimbergen) to the category? For one, it’s the growth of the category. But more importantly, it’s the profit margins these beers enjoy as Big Brewers have suffered a margin erosion of their major brands in France.

While Kronenbourg has signed a distribution agreement with the Pietra brewery from Corsica, which was founded in 1996 and is now one of the most highly regarded regional breweries of France with more than 65,000 hl beer sold, Heineken has chosen to revitalize some dormant brands in its portfolio. The Dutch brewer will try to boost sales of the historical brands Pelican (brewed in Mons-en-Barœul), Anchor (Schiltigheim) and Phoenician (Marseille).

Moreover, Heineken will push its Belgian beer specialties that came with the brewer Alken-Maes, which Heineken acquired in 2008 as part of the Scottish & Newcastle transaction.

Since both groups already have ties with U.S. craft brewers, Kronenbourg will introduce beers by Brooklyn Brewery (with whom Carlsberg has a joint venture in the Nordics). For its part, Heineken last year acquired a 50 percent stake in U.S. craft brewer Lagunitas, whose hoppy beer it will launch in the Paris region in some bars and cafes.