Belgian cafés reopened their outdoor venues

Belgium | The long wait is over. On 8 May 2021, bars and restaurants reopened their outdoor terraces. The reopening was a relief for beer drinkers, bar owners and brewers, after the on-premise was ordered shut in October 2020.

Belgium decided to slash value-added tax from 21 percent to 6 percent to support the reopening, setting aside EUR 835 million (USD 1 billion) to put some fizz back into the sector.

Any type of government help will be welcomed by Belgium’s brewers after a calamitous 2020.

Spilling red ink

At the end of April, Co.Br.Ha, the parent of brewer Haacht, published its 2020 annual results. Co.Br.Ha, which ranks among the largest Belgian brewers, traditionally comes late with its annual figures. They are released when many other companies are already reporting their first quarter results, says De Tijd, a newspaper. Per its report, the company registered a turnover of EUR 66.2 million (USD 80 million), down 39 percent over 2019.

The closures in the on-premise resulted in significantly lower beer sales in all markets. As a consequence, Haacht, which brews beers like Primus and Tongerlo, turned red with a net loss of EUR 10.5 million (USD 12.6 million), compared to a net profit of EUR 3.2 million in 2019.

In off-premise sales, turnover stabilised in Belgium. In France, Spain and Canada, however, an increase in retail sales was recorded. In addition to beers, Haacht produces mineral waters and lemonades under the brand name Val. Total beverage sales fell 41 percent.

Income from real estate rental declined by 20 percent as the brewery agreed to waive its publicans part of their rent. “2021 will again be strongly negatively affected by the closure of the hospitality industry for four months to date,” said CEO Bouwdewijn van der Kelen. “We see 2021 as a transition year that should pave the way for a return to profitability in 2022.”

Against this background of uncertainty, Haacht is not paying a dividend.