Bionade sold to Germany’s brewer Radeberger

The Coca-Cola Company, Bitburger Brewery and several other companies – many showed willing to come to the Kowalskys’ rescue. But only Oetker put up enough money to clinch a deal. Obviously, there was a catch to Oetker’s offer of help: Peter and Stefan Kowalsky had to sell some of their shares. However, they will continue to run the company together with an emissary from Oetker.

The deal is still subject to regulatory approval.

With Oetker entering the Bionade business, it is hoped that Bionade will recover some of the volume it lost when at ESH’s behest Bionade implemented a 40 percent price hike in the summer of 2008. Instead of paying EUR 13 per crate of Bionade (24 bottles), consumers were suddenly asked to pay EUR 18. Bionade’s sales dropped to 160 million bottles in 2008 from 200 million bottles in 2007. Market observers believe that sales will have declined even further this year.

The price hike seems to have cost Bionade its clout with German consumers. The eco-friendly brand, which has always been able to cash in on its underdog image, was suddenly deemed greedy instead of right-on.

Oetker’s beer division Radeberger, which happens to be Germany’s number one brewing group with sales of EUR 1.6 billion and brands like Radeberger, Jever, Schöfferhofer and Berliner Pilsener, will try to boost Bionade’s domestic sales with the help of a few timely price promotions.

But what will become of Bionade’s international expansion plans? Radeberger has limited itself to the German market. It does not have any breweries outside Germany.

Only a year ago, the Kowalskys still touted plans to build a production plant for Bionade in Iowa – from where they hoped to serve the whole of the U.S.

Bionade has probably axed this multi-million dollar scheme – at least Bionade’s executives could not be reached for comment on 13 October 2009.