Coming out of a tempestuous relationship
The bottom line is that Dr Weber will have made a profit selling and buying back the stake in his brewery. But it cannot have been to his liking that for years his venture with BHI has monopolised conversations at German brewers’ reunions.
Certainly, BHI let it be known that they were not happy with Karlsberg’s low margins. Dr Weber admitted as much when he told reporters recently that his business margins have always been between 3 and 6 percent, whereas Schörghuber/Heineken wanted 8 percent.
Besides, the decline in Karlsberg’s turnover would have irked BHI even more. In 2007, Karlsberg’s turnover was EUR 310 million, in 2008 it was EUR 296 million.
Following the divorce, Karlsberg hopes to focus on its regional beer business in western Germany. Last year it sold 3.5 million hl beer, the company said.
In exchange for having to return the distribution rights to the Desperados beer mix brand (125,000 hl) to Heineken, Karlsberg gained the distribution rights to the Heineken six-pack in Germany.
Still, Karlsberg will have to put on a restructuring programme, which might lead to jobs being axed. Currently, Karlsberg employs 700 people in Homburg.
The deal still awaits approval by Germany’s monopoly watchdogs.
