Aass Brewery resigns from Norway’s Brewers Association over Hansa sale
Norway | Who knew that fears of intra-Nordic domination run so strong? One of Norway’s largest breweries, Aass Bryggeri, resigned from the country’s Brewery and Beverage Association on 22 March 2022, implying that Danish domination of the association will run counter to Norwegian brewers’ interests.
Aass is the country's oldest brewery and was established in 1834 in Drammen, some 40 km west of Oslo. It has been family-owned for five generations and is currently run by Christian AK Aass. In 2020, Aass produced 300,000 hl of beer and beverages, per its website.
Who speaks up for Norwegian brewers’ interests?
General manager Christian AK Aass made no secret that changes in ownership at the country’s two leading beer and beverage groups, Rignes and Hansa Borg, were one of the reasons why he chose to leave the industry body.
“For us, Norwegian ownership is important, and therefore we believe that we can do more outside the Brewers' Association now,” Mr Aass said.
Mr Aass explained that the industry has changed a lot in recent years, which resulted in 90 percent of domestic beer volume now being produced by only two members which are controlled by foreign owners, Denmark’s Carlsberg and Royal Unibrew. “This will probably change the framework conditions and issues in the association, as international giants naturally have different priorities and focuses than the Norwegian-owned industry,” he was quoted as saying.
The sale of Hansa Borg brewery
The departure of Aass from the industry body follows Royal Unibrew’s full takeover of the country’s number two brewer, Hansa Borg, in early January 2022. When the news came out, Mr Aass called it “a very sad day for Norway”.
The country’s major brewer, Ringnes, has been owned by Carlsberg since 2004.
The Brewery and Beverage Association represents 137 breweries in Norway. Although not all of the country’s brewers are association members, it sends a strong signal when one of the association's oldest members resigns.
In January, Royal Unibrew agreed to buy the remaining 75 percent of the shares in Hansa Borg Bryggerier for approximately USD 286 million. Royal Unibrew already had a 25 percent stake in the company (since 2002). The transaction price is 10 percent in cash and the rest in Royal Unibrew’s shares.
The acquisition must receive regulatory approval, and the parties expect the transaction to be completed during the first half of this year.
A natural fit for Royal Unibrew
Hansa Borg is headquartered in Bergen. It produces beer brands Hansa, Borg, CB, Heineken and Grevens ciders. It also fully owns (since 2020) one of Norway’s best known craft breweries, Nøgne Ø.
The group is expected to generate normalised revenue in 2022 of around NOK 1.4 billion (USD 158 million) with a normalized EBITDA of around NOK 210 million (USD 24 million).
Notorious for its high taxes and strict alcohol regulations, Norway’s brewers still produced 2.5 million hl beer in 2020. Beer consumption stood at 3 million hl, or 56 litres per capita, according to data by the Brewers of Europe, an industry body.
