Bionade plans to drop prices

Market observers say that Radeberger, a unit of Germany’s privately-owned Oetker Group, paid EUR 50 million for its 70 percent stake. Before its sales dipped, Bionade sold 200 million bottles (660,000 hl) in 2007. Radeberger admitted that the sales decline continued in 2009, but said that it hopes to increase volumes this year in the high single-digits.

When in 2008, Bionade raised prices 34 percent to EUR 0.79 per 0.33 l-bottle, revenues dropped an estimated 50 percent to about EUR 50 million. For 2009 Peter Kowalsky, Bionade’s front man, had expected revenues to decline another 20 percent – but refused to release full year figures.

This year could become pivotal for Bionade. Not only will Bionade have to sort itself out in Germany, it will also have to tackle export markets. Previous forays into Switzerland, Austria and Benelux have not been crowned with success.

Although Radeberger has three seats (out of five) on Bionade’s board of management, the brothers Stefan und Peter Kowalsky continue to run the business together with Radeberger’s finance man Christian Schütz, it was reported.

In a first move, Radeberger’s 400-odd distribution team will support Bionade’s 40. Moreover, Radeberger and Bionade are said to work out new logistics which will save wholesalers the trip to Bionade’s headquarters in Ostheim, a small town in northern Bavaria. As of next year, Bionade should be available from Radeberger’s production sites in Berlin, Dortmund, Jever and Frankfurt. That will leave Ostheim with the production of Bionade’s concentrate only.

Contrary to earlier announcements, Bionade’s international expansion will be postponed until next year. This year will be devoted to establishing Bionade in several metropolitan markets outside Germany. This means that Bionade’s grand plans for building a brewery in the Mid-West of the United States, touted in 2008, have also been put on hold. Temporarily or forever – few will know.