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Beer in Germany

Euromonitor International

July 2019

B E E R I N G E R M A N Y P a s s p o r t i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Prospects ..................................................................................................................................... 1

Volume Sales Set To Decline ................................................................................................... 1 Premium, Craft, Hybrid – Consumption Behaviour Is Shifting .................................................. 1 Demand for Non/low Alcohol Beer To Continue To Rise .......................................................... 1

Competitive Landscape ................................................................................................................ 2

Radeberger Gruppe Remains Unchallenged at the Top ........................................................... 2 Krombacher Posts Fastest Total Volume Growth of Top Five .................................................. 2 Non/low Alcohol Beer Offers New Product Development ......................................................... 2

Category Background ................................................................................................................... 2

Lager Price Band Methodology ................................................................................................ 2

Summary 1 Lager by Price Band 2018 ............................................................................ 3 Table 1 Number of Breweries 2013-2018 ................................................................. 3

Category Data .............................................................................................................................. 3

Table 2 Sales of Beer by Category: Total Volume 2013-2018 .................................. 3 Table 3 Sales of Beer by Category: Total Value 2013-2018 ..................................... 4 Table 4 Sales of Beer by Category: % Total Volume Growth 2013-2018 .................. 5 Table 5 Sales of Beer by Category: % Total Value Growth 2013-2018 ..................... 5 Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018 ........................ 6 Table 7 Sales of Beer by Off-trade vs On-trade: Value 2013-2018 ........................... 6 Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018 ....... 6 Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018 .......... 6 Table 10 GBO Company Shares of Beer: % Total Volume 2014-2018 ....................... 6 Table 11 NBO Company Shares of Beer: % Total Volume 2014-2018 ....................... 7 Table 12 LBN Brand Shares of Beer: % Total Volume 2015-2018 .............................. 8 Table 13 Forecast Sales of Beer by Category: Total Volume 2018-2023 ................... 9 Table 14 Forecast Sales of Beer by Category: Total Value 2018-2023 .................... 10 Table 15 Forecast Sales of Beer by Category: % Total Volume Growth 2018-

2023 ........................................................................................................... 10 Table 16 Forecast Sales of Beer by Category: % Total Value Growth 2018-

2023 ........................................................................................................... 11

B E E R I N G E R M A N Y P a s s p o r t 1

BEER IN GERMANY

HEADLINES ▪ Beer records 3% total volume growth to reach 9.7 billion litres in 2018

▪ Long summer supports beer sales

▪ Flavoured/mixed lager records strongest total volume growth of 18% to reach 728 million litres

▪ Total average unit price of beer increases marginally to EUR3.10 per litre in current value

terms in 2018

▪ Radeberger Gruppe KG continues to lead beer in 2018, with a total volume share of 13%

▪ Beer is expected to record a -1% total volume CAGR over the forecast period, falling to 9.5

billion litres in 2023

PROSPECTS

Volume Sales Set To Decline

The long-term trend of declining beer per capita consumption in Germany is set to continue to

unfold over the forecast period. Beer in Germany was characterised by a high level of maturity

and by changing consumption habits at the end of the review period. Germans have become

increasingly conscious of their beer intake in addition to their overall alcohol intake, and are

therefore drinking less. However, at the same time they are seeking more premium and

speciality beers, as well as non/low alcohol beer. Furthermore, the demographic change is also

contributing to the decline in volume sales (with the exception of 2018), as older people tend to

drink less beer. Overall, the perception of beer is changing in German society, as consumers

increasingly perceive it to be a stimulant instead of a simple mass alcoholic drink.

Premium, Craft, Hybrid – Consumption Behaviour Is Shifting

Increasingly health-conscious consumers, more adept than previous generations at

moderating their alcohol intake, seek quality in alcoholic drinks. Premiumisation is therefore

expected to further shape beer over the forecast period. Quality is becoming increasingly more

important than affordability; therefore, consumers are happy to spend marginally more, in both

on- and off-trade channels. As craft beer has a reputation for offering high-quality products with

superior flavours, it is expected to benefit further from this trend. German consumers are moving

away from standard local lager and seeking more indulgent/exotic variants such as imported,

speciality and premium products. Differentiation is important for beer consumers as they seek

more individualised products. Furthermore, millennials are looking for more exotic choices such

as hybrid products, which explains the impressive total volume growth of flavoured/mixed lager.

Imported premium lager, craft beer and in particular non/low alcohol beer are expected to

capitalise on this development over the forecast period.

Demand for Non/low Alcohol Beer To Continue To Rise

Growing aspirations to live healthier lifestyles not only translated to lower overall consumption

of alcoholic drinks, but also to a shift in types of drinks being consumed. Notably, non/low

alcohol beer gained in popularity due to its lower ABV and carbohydrate content. Additionally,

non/low alcohol beer mixes, such as non alcoholic Radlers, experienced strong growth and

contributed to its overall dynamic development. This was supported by new product

B E E R I N G E R M A N Y P a s s p o r t 2

developments and marketing efforts by manufacturers, such as Krombacher 0.0%, Veltins

Alcohol Free Pilsener 0.0% or Gösser NaturRadler Alkoholfrei. As the trend towards greater

health consciousness is expected to continue, non/low alcohol beer sales will continue to rise.

COMPETITIVE LANDSCAPE

Radeberger Gruppe Remains Unchallenged at the Top

Radeberger Gruppe benefited from the hot summer in 2018, continuing to record total volume

growth. This was particularly driven by its brands Schöfferhofer, Clausthaler, Jever Fun and the

regional beer brand Ur-Krostitzer. These brands’ strong growth is evident of increasing

consumer interest and a shift towards non/low alcohol beer, beer mixes, such as

weissbier/weizen/wheat beer and regional premium brands. Therefore, Radeberger retained its

clear leadership of beer in Germany in 2018.

Looking ahead, the player is expected to continue to lead beer in Germany, as it owns and

distributes successful domestic and regional premium brands, in addition to popular imported

beer brands, such as Guinness, Kilkenny Irish Beer III and Sol. The group’s focus on

diversifying its beer brand portfolio, especially also by building on strong regional brands, is

likely to guarantee its leading position within German beer over the forecast period.

Krombacher Posts Fastest Total Volume Growth of Top Five

Krombacher Brauerei Bhd Schadeberg GmbH & Co KG continued its growth path in 2018,

driven by its Krombacher umbrella brand; Krombacher Radler, Krombacher Alkoholfrei and

Krombacher Weizen particularly contributed to its strong performance. Its domestic premium

lager Krombacher took over the leading position within beer in 2018, displacing Oettinger in total

volume share terms. In addition, Krombacher has successfully extended its new 0.0% line with a

new grapefruit flavour and also introduced a new speciality beer. Over the forecast period,

Krombacher is expected to remain one of the leading players in beer in Germany, particularly as

the brewery is successfully addressing consumer trends such as premium, non alcoholic and

regional speciality beer.

Non/low Alcohol Beer Offers New Product Development

Increasingly moderate alcohol consumption and the continued health and wellness trend have

enabled non/low alcohol beer to record an impressive performance as players successfully

capitalised on the growing consumer demand for such products. Accordingly, over the review

period, non/low alcohol beer witnessed various new product developments from all major

breweries, as well as from small- and medium-sized ones. Non alcoholic beer is now available

in all forms and is increasingly present as a non alcoholic beer mix, with popular flavours, such

as lemon or grapefruit. Sales are expected to continue to grow significantly over the forecast

period, with potential through both on- and off-trade channels.

CATEGORY BACKGROUND

Lager Price Band Methodology

▪ In Germany, lager is divided into three general price segments – economy (entry level), mid-

priced and premium. Even though there are regional and channel-related differences to the

pricing of specific brands, overall the average price for off-trade premium lager was EUR1.27

per litre in 2018. This means there was a marginal increase compared with the previous

B E E R I N G E R M A N Y P a s s p o r t 3

year’s unit price; however, at a European level this is still an exceptionally low beer price.

Brands such as Bitburger, Beck’s and Veltins can be found in this segment.

▪ The still rather low prices and regular discounts on premium lager have also placed pressure

on mid-priced lager, as it stands in direct competition with premium products. The average off-

trade price in 2018 was EUR1.03 per litre; marginally different from the prices of premium

brands when they are on sale. Common mid-priced lager brands are Ur-Krostitzer, Holsten

and Astra. One way to secure a loyal customer base for mid-priced lager brands is the

addition of promotions and commercial gifts with the purchase of a crate of beer, as regularly

implemented for the fashionable brand Astra.

▪ Prices of off-trade economy lager remained stable in 2018, with an average price of EUR0.57

per litre. The leading brand in this category remained Oettinger, followed by private label

ranges from Aldi and Sternburg from Radeberger Gruppe.

Summary 1 Lager by Price Band 2018

Category Price range per litre

Premium EUR1.27 and above

Mid-priced EUR1.03-1.26

Economy EUR0.57-1.02

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Note: Price bands for lager are based primarily on price, but positioning and packaging are other factors that are considered in classification

Table 1 Number of Breweries 2013-2018

2013 2014 2015 2016 2017 2018 TOTAL 1,352 1,359 1,392 1,410 1,492 1,539

Source: Euromonitor International

According to the German brewers association, around a half of all breweries are so called

microbreweries but not all of them can be defined as craft breweries. In Germany, it is difficult to

draw the line between a microbrewerie and a craft brewerie, because of the regional nature of

beer and the large amount of small and local breweries.

CATEGORY DATA

Table 2 Sales of Beer by Category: Total Volume 2013-2018

million litres 2013 2014 2015 2016 2017 2018 Dark Beer 1,591.5 1,570.7 1,537.2 1,537.9 1,486.8 1,509.7 - Ale 520.3 524.2 517.7 511.8 491.4 480.9 - Sorghum - - - - - - - Weissbier/Weizen/ 1,071.2 1,046.5 1,019.6 1,026.1 995.5 1,028.9 Wheat Beer Lager 7,192.8 7,140.0 7,077.4 7,071.9 6,961.3 7,158.8 - Flavoured/Mixed Lager 608.4 610.5 605.5 610.0 615.1 728.3

B E E R I N G E R M A N Y P a s s p o r t 4

- Standard Lager 6,584.4 6,529.5 6,471.8 6,462.0 6,346.2 6,430.5 -- Premium Lager 4,063.4 4,022.5 3,997.0 4,006.2 3,936.6 4,003.6 --- Domestic Premium 3,833.5 3,795.4 3,770.5 3,762.9 3,706.0 3,767.4 Lager --- Imported Premium 229.9 227.1 226.5 243.3 230.6 236.2 Lager -- Mid-Priced Lager 1,439.4 1,433.3 1,427.9 1,426.1 1,400.1 1,413.3 --- Domestic Mid-Priced 1,380.8 1,374.6 1,369.8 1,365.5 1,342.9 1,355.3 Lager --- Imported Mid-Priced 58.7 58.6 58.2 60.7 57.1 58.0 Lager -- Economy Lager 1,081.6 1,073.8 1,046.9 1,029.7 1,009.6 1,013.6 --- Domestic Economy 1,081.6 1,073.8 1,046.9 1,029.7 1,009.6 1,013.6 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 763.6 793.4 822.2 920.4 928.3 1,010.3 - Low Alcohol Beer 279.1 289.1 297.7 298.8 296.2 297.6 - Non Alcoholic Beer 484.5 504.3 524.5 621.5 632.1 712.7 Stout 17.3 17.9 18.3 18.7 19.0 19.4 Beer 9,565.3 9,522.0 9,455.0 9,549.0 9,395.4 9,698.2

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 3 Sales of Beer by Category: Total Value 2013-2018

EUR million 2013 2014 2015 2016 2017 2018 Dark Beer 5,572.3 5,597.2 5,548.4 5,553.6 5,420.2 5,625.1 - Ale 1,945.5 1,986.7 1,964.7 1,952.2 1,906.7 1,913.7 - Sorghum - - - - - - - Weissbier/Weizen/ 3,626.7 3,610.6 3,583.7 3,601.5 3,513.5 3,711.3 Wheat Beer Lager 20,694.3 20,963.2 20,946.3 21,108.1 21,033.7 21,984.9 - Flavoured/Mixed Lager 1,990.8 2,039.7 2,034.8 2,078.6 2,182.9 2,612.5 - Standard Lager 18,703.5 18,923.5 18,911.4 19,029.5 18,850.7 19,372.4 -- Premium Lager 13,806.4 13,933.2 13,900.4 13,977.3 13,863.3 14,283.2 --- Domestic Premium 12,783.8 12,906.0 12,868.6 12,855.0 12,790.8 13,166.2 Lager --- Imported Premium 1,022.6 1,027.2 1,031.9 1,122.2 1,072.5 1,117.0 Lager -- Mid-Priced Lager 4,299.6 4,384.5 4,417.9 4,468.0 4,410.8 4,507.2 --- Domestic Mid-Priced 4,159.1 4,241.9 4,274.8 4,317.9 4,267.7 4,360.9 Lager --- Imported Mid-Priced 140.5 142.5 143.1 150.1 143.1 146.3 Lager -- Economy Lager 597.5 605.8 593.1 584.2 576.6 582.1 --- Domestic Economy 597.5 605.8 593.1 584.2 576.6 582.1 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 1,704.9 1,780.9 1,849.9 2,073.7 2,128.0 2,362.3 - Low Alcohol Beer 634.5 660.3 681.1 683.1 682.6 693.8 - Non Alcoholic Beer 1,070.3 1,120.6 1,168.8 1,390.5 1,445.4 1,668.5 Stout 111.1 115.8 119.0 122.5 126.6 131.4 Beer 28,082.6 28,457.2 28,463.6 28,857.9 28,708.4 30,103.7

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

B E E R I N G E R M A N Y P a s s p o r t 5

Table 4 Sales of Beer by Category: % Total Volume Growth 2013-2018

% total volume growth 2017/18 2013-18 CAGR 2013/18 Total Dark Beer 1.5 -1.0 -5.1 - Ale -2.1 -1.6 -7.6 - Sorghum - - - - Weissbier/Weizen/Wheat Beer 3.4 -0.8 -4.0 Lager 2.8 -0.1 -0.5 - Flavoured/Mixed Lager 18.4 3.7 19.7 - Standard Lager 1.3 -0.5 -2.3 -- Premium Lager 1.7 -0.3 -1.5 --- Domestic Premium Lager 1.7 -0.3 -1.7 --- Imported Premium Lager 2.4 0.5 2.7 -- Mid-Priced Lager 0.9 -0.4 -1.8 --- Domestic Mid-Priced Lager 0.9 -0.4 -1.8 --- Imported Mid-Priced Lager 1.5 -0.2 -1.1 -- Economy Lager 0.4 -1.3 -6.3 --- Domestic Economy Lager 0.4 -1.3 -6.3 --- Imported Economy Lager - - - Non/Low Alcohol Beer 8.8 5.8 32.3 - Low Alcohol Beer 0.5 1.3 6.6 - Non Alcoholic Beer 12.7 8.0 47.1 Stout 2.2 2.3 11.9 Beer 3.2 0.3 1.4

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 5 Sales of Beer by Category: % Total Value Growth 2013-2018

% local currency, current value growth 2017/18 2013-18 CAGR 2013/18 Total Dark Beer 3.8 0.2 0.9 - Ale 0.4 -0.3 -1.6 - Sorghum - - - - Weissbier/Weizen/Wheat Beer 5.6 0.5 2.3 Lager 4.5 1.2 6.2 - Flavoured/Mixed Lager 19.7 5.6 31.2 - Standard Lager 2.8 0.7 3.6 -- Premium Lager 3.0 0.7 3.5 --- Domestic Premium Lager 2.9 0.6 3.0 --- Imported Premium Lager 4.1 1.8 9.2 -- Mid-Priced Lager 2.2 0.9 4.8 --- Domestic Mid-Priced Lager 2.2 1.0 4.9 --- Imported Mid-Priced Lager 2.2 0.8 4.1 -- Economy Lager 1.0 -0.5 -2.6 --- Domestic Economy Lager 1.0 -0.5 -2.6 --- Imported Economy Lager - - - Non/Low Alcohol Beer 11.0 6.7 38.6 - Low Alcohol Beer 1.6 1.8 9.3 - Non Alcoholic Beer 15.4 9.3 55.9 Stout 3.8 3.4 18.2 Beer 4.9 1.4 7.2

B E E R I N G E R M A N Y P a s s p o r t 6

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 6 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018

million litres 2013 2014 2015 2016 2017 2018 Off-trade 6,232.2 6,217.7 6,180.2 6,253.8 6,167.7 6,391.8 On-trade 3,333.1 3,304.3 3,274.8 3,295.1 3,227.7 3,306.4 Total 9,565.3 9,522.0 9,455.0 9,549.0 9,395.4 9,698.2

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7 Sales of Beer by Off-trade vs On-trade: Value 2013-2018

EUR million 2013 2014 2015 2016 2017 2018 Off-trade 7,247.6 7,476.5 7,495.9 7,662.7 7,660.9 8,161.2 On-trade 20,835.0 20,980.8 20,967.7 21,195.2 21,047.4 21,942.5 Total 28,082.6 28,457.2 28,463.6 28,857.9 28,708.4 30,103.7

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018

% volume growth 2017/18 2013-18 CAGR 2013/18 Total Off-trade 3.6 0.5 2.6 On-trade 2.4 -0.2 -0.8 Total 3.2 0.3 1.4

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 9 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018

% constant value growth 2017/18 2013-18 CAGR 2013/18 Total Off-trade 6.5 2.4 12.6 On-trade 4.3 1.0 5.3 Total 4.9 1.4 7.2

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 10 GBO Company Shares of Beer: % Total Volume 2014-2018

% total volume Company 2014 2015 2016 2017 2018

B E E R I N G E R M A N Y P a s s p o r t 7

Oetker-Gruppe 12.4 12.5 12.4 12.7 12.6 Anheuser-Busch InBev NV 8.0 8.1 7.9 7.5 7.4 Bitburger Braugruppe GmbH 7.7 7.6 7.4 7.4 7.3 Krombacher Brauerei Bhd 5.8 5.8 5.8 6.0 6.0 Schadeberg GmbH & Co KG Oettinger Brauerei GmbH 5.7 5.5 5.2 5.0 4.6 Carlsberg A/S 3.8 3.8 3.8 3.7 3.7 Brauerei C & A Veltins 3.2 3.3 3.4 3.4 3.5 GmbH & Co KG Paulaner Brauerei GmbH 3.1 3.1 3.1 3.3 3.5 & Co KG Brau Holding 2.9 2.9 2.9 2.9 2.6 International AG Warsteiner Brauerei 2.8 2.6 2.5 2.4 2.5 Haus Cramer GmbH & Co KG Karlsberg Brauerei GmbH 2.2 2.1 2.0 2.0 2.0 & Co KG Erdinger Privatbrauerei 1.8 1.8 1.8 1.8 1.8 Weissbräu Werner Brombach GmbH Frankfurter Brauhaus GmbH 1.8 1.8 1.8 1.8 1.7 Augustiner-Bräu Wagner KG 1.2 1.3 1.4 1.4 1.3 Badische Staatsbrauerei 0.8 0.8 0.8 0.8 0.8 Rothaus AG Reissdorf GmbH & Co, 0.6 0.6 0.6 0.6 0.6 Privatbrauerei Glaabsbräu KG 0.4 0.4 0.4 0.5 0.6 Heineken NV 0.5 0.5 0.5 0.5 0.6 Gaffel Becker & Co oHG, 0.5 0.5 0.4 0.5 0.4 Privatbrauerei Cölner Hofbräu Früh 0.4 0.4 0.4 0.4 0.4 Asahi Group Holdings Ltd - - 0.3 0.3 0.3 Budejovicky Budvar np 0.3 0.3 0.3 0.3 0.3 Eichbaum GmbH & Co KG 0.2 0.3 0.3 0.3 0.3 Brauerei Maisel GmbH & 0.3 0.3 0.3 0.3 0.3 Co KG Flensburger Brauereien 0.3 0.3 0.3 0.3 0.3 Emil Petersen GmbH & Co KG Weissbierbrauerei Georg 0.3 0.2 0.2 0.2 0.2 Schneider & Sohn GmbH König Ludwig GmbH & Co KG 0.2 0.2 0.2 0.2 0.2 Privat-Brauerei 0.2 0.2 0.2 0.2 0.2 Schmucker GmbH & Co KG Diageo Plc 0.1 0.1 0.1 0.1 0.1 Molson Coors Brewing Co - - 0.1 0.1 0.1 Private Label 5.0 5.0 4.9 5.0 4.9 Others 27.5 27.6 28.3 28.2 28.9 Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 11 NBO Company Shares of Beer: % Total Volume 2014-2018

% total volume Company 2014 2015 2016 2017 2018 Radeberger Gruppe KG 12.3 12.4 12.3 12.6 12.5 Krombacher Brauerei Bhd 5.8 5.8 5.8 6.5 6.6

B E E R I N G E R M A N Y P a s s p o r t 8

Schadeberg GmbH & Co KG Oettinger Brauerei GmbH 6.3 6.0 5.8 5.6 5.1 Brauerei C & A Veltins 3.2 3.3 3.4 3.4 3.5 GmbH & Co KG Paulaner Brauerei GmbH 3.1 3.1 3.1 3.3 3.3 & Co KG Carlsberg Deutschland 3.2 3.2 3.2 3.2 3.1 GmbH Aldi Einkauf GmbH & Co 2.4 2.5 2.5 2.5 2.4 oHG Warsteiner Brauerei 2.5 2.4 2.2 2.1 2.2 Haus Cramer GmbH & Co KG Kulmbacher Brauerei AG 2.1 2.1 2.1 2.1 2.0 Karlsberg Brauerei GmbH 2.2 2.1 2.0 2.0 2.0 & Co KG Erdinger Privatbrauerei 1.8 1.8 1.8 1.8 1.8 Weissbräu Werner Brombach GmbH Augustiner-Bräu Wagner KG 1.2 1.3 1.4 1.4 1.3 Lidl & Schwarz Stiftung 1.2 1.3 1.2 1.3 1.2 & Co KG König-Brauerei GmbH & 1.2 1.2 1.2 1.2 1.1 Co KG Köstritzer 0.8 0.8 0.8 0.8 0.8 Schwarzbierbrauerei GmbH & Co Reissdorf GmbH & Co, 0.6 0.6 0.6 0.6 0.6 Privatbrauerei Fürstlich 0.6 0.6 0.6 0.6 0.6 Fürstenbergische Brauerei GmbH & Co KG Diebels GmbH & Co KG, 0.6 0.5 0.5 0.4 0.4 Privatbrauerei Heineken Deutschland GmbH 0.4 0.4 0.4 0.4 0.4 Cölner Hofbräu Früh 0.4 0.4 0.4 0.4 0.4 Spaten-Franziskaner- 0.2 0.3 0.3 0.3 0.4 Bräu KGaA Löwenbräu AG 0.3 0.3 0.3 0.3 0.3 Brauerei Maisel GmbH & 0.3 0.3 0.3 0.3 0.3 Co KG Flensburger Brauereien 0.3 0.3 0.3 0.3 0.3 Emil Petersen GmbH & Co KG Weissbierbrauerei Georg 0.3 0.2 0.2 0.2 0.2 Schneider & Sohn GmbH Frankenheim, 0.3 0.3 0.3 0.2 0.2 Privatbrauerei König Ludwig GmbH & Co KG 0.2 0.2 0.2 0.2 0.2 Vitamalz GmbH & Co KG 0.4 0.4 0.4 - - Eichbaum-Brauereien AG - - - - - Dom-Brauerei AG - - - - - Other Private Label 1.3 1.3 1.2 1.2 1.2 Others 44.5 44.6 45.3 44.9 45.4 Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 12 LBN Brand Shares of Beer: % Total Volume 2015-2018

B E E R I N G E R M A N Y P a s s p o r t 9

% total volume Brand (Global Brand Company 2015 2016 2017 2018 Owner) Krombacher Krombacher Brauerei Bhd 4.7 4.7 4.8 4.8 Schadeberg GmbH & Co KG Oettinger Oettinger Brauerei GmbH 5.4 5.2 5.0 4.6 Bitburger Bitburger Braugruppe GmbH 3.7 3.6 3.6 3.5 Beck's (Anheuser- Anheuser-Busch InBev 2.8 2.6 2.5 2.5 Busch InBev NV) Germany Holding GmbH Aldi (Private Label) Aldi Einkauf GmbH & Co oHG 2.3 2.3 2.3 2.3 Veltins Brauerei C & A Veltins 2.3 2.3 2.3 2.3 GmbH & Co KG Hasseröder Anheuser-Busch InBev 2.4 2.3 2.1 2.0 (Anheuser-Busch Germany Holding GmbH InBev NV) Warsteiner Warsteiner Brauerei 2.2 2.0 2.0 2.0 Haus Cramer GmbH & Co KG Radeberger (Oetker- Radeberger Gruppe KG 1.9 1.9 1.9 1.8 Gruppe) Frankfurter Frankfurter Brauhaus GmbH 1.8 1.8 1.8 1.7 Other Private Label Other Private Label 1.3 1.2 1.2 1.2 (Private Label) Others Others 69.2 70.0 70.5 71.3 Total Total 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 13 Forecast Sales of Beer by Category: Total Volume 2018-2023

million litres 2018 2019 2020 2021 2022 2023 Dark Beer 1,509.7 1,488.9 1,468.8 1,449.1 1,430.0 1,410.5 - Ale 480.9 470.6 462.4 456.1 451.8 448.8 - Sorghum - - - - - - - Weissbier/Weizen/ 1,028.9 1,018.4 1,006.4 993.0 978.1 961.7 Wheat Beer Lager 7,158.8 7,136.4 7,093.4 7,031.5 6,952.1 6,854.8 - Flavoured/Mixed Lager 728.3 744.1 758.1 769.5 778.4 784.6 - Standard Lager 6,430.5 6,392.4 6,335.3 6,262.1 6,173.7 6,070.3 -- Premium Lager 4,003.6 3,986.1 3,958.7 3,921.8 3,875.0 3,818.7 --- Domestic Premium 3,767.4 3,748.2 3,719.6 3,682.0 3,635.1 3,579.0 Lager --- Imported Premium 236.2 238.0 239.1 239.7 239.9 239.6 Lager -- Mid-Priced Lager 1,413.3 1,404.8 1,390.7 1,371.1 1,348.9 1,323.6 --- Domestic Mid-Priced 1,355.3 1,346.5 1,332.4 1,313.0 1,291.3 1,266.7 Lager --- Imported Mid-Priced 58.0 58.3 58.3 58.1 57.7 56.9 Lager -- Economy Lager 1,013.6 1,001.5 985.9 969.2 949.8 927.9 --- Domestic Economy 1,013.6 1,001.5 985.9 969.2 949.8 927.9 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 1,010.3 1,034.7 1,063.4 1,095.4 1,131.6 1,173.1 - Low Alcohol Beer 297.6 299.4 301.6 304.3 307.7 311.5 - Non Alcoholic Beer 712.7 735.4 761.9 791.1 823.9 861.6

B E E R I N G E R M A N Y P a s s p o r t 10

Stout 19.4 19.8 20.2 20.7 21.2 21.8 Beer 9,698.2 9,679.9 9,645.8 9,596.7 9,534.9 9,460.3

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 14 Forecast Sales of Beer by Category: Total Value 2018-2023

EUR million 2018 2019 2020 2021 2022 2023 Dark Beer 5,625.1 5,632.6 5,618.9 5,601.2 5,574.9 5,538.3 - Ale 1,913.7 1,913.9 1,913.9 1,915.6 1,917.8 1,922.7 - Sorghum - - - - - - - Weissbier/Weizen/ 3,711.3 3,718.8 3,705.0 3,685.7 3,657.1 3,615.6 Wheat Beer Lager 21,984.9 22,174.3 22,284.9 22,323.9 22,300.6 22,201.9 - Flavoured/Mixed Lager 2,612.5 2,718.4 2,820.8 2,921.1 3,018.1 3,106.7 - Standard Lager 19,372.4 19,455.9 19,464.1 19,402.8 19,282.4 19,095.2 -- Premium Lager 14,283.2 14,360.1 14,375.8 14,331.6 14,234.0 14,076.0 --- Domestic Premium 13,166.2 13,226.1 13,226.7 13,171.1 13,066.9 12,904.8 Lager --- Imported Premium 1,117.0 1,134.0 1,149.1 1,160.5 1,167.1 1,171.2 Lager -- Mid-Priced Lager 4,507.2 4,519.0 4,517.0 4,505.9 4,490.1 4,468.7 --- Domestic Mid-Priced 4,360.9 4,370.6 4,367.2 4,355.3 4,339.3 4,318.7 Lager --- Imported Mid-Priced 146.3 148.3 149.8 150.6 150.8 150.1 Lager -- Economy Lager 582.1 576.9 571.3 565.3 558.4 550.6 --- Domestic Economy 582.1 576.9 571.3 565.3 558.4 550.6 Lager --- Imported Economy - - - - - - Lager Non/Low Alcohol Beer 2,362.3 2,427.8 2,506.5 2,595.7 2,699.0 2,817.9 - Low Alcohol Beer 693.8 701.1 710.8 722.7 737.6 754.7 - Non Alcoholic Beer 1,668.5 1,726.8 1,795.7 1,873.0 1,961.4 2,063.1 Stout 131.4 136.1 141.5 147.7 154.8 162.6 Beer 30,103.7 30,370.9 30,551.8 30,668.5 30,729.2 30,720.7

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 15 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023

% total volume growth 2018/19 2018-23 CAGR 2018/23 Total Dark Beer -1.4 -1.4 -6.6 - Ale -2.1 -1.4 -6.7 - Sorghum - - - - Weissbier/Weizen/Wheat Beer -1.0 -1.3 -6.5 Lager -0.3 -0.9 -4.2 - Flavoured/Mixed Lager 2.2 1.5 7.7 - Standard Lager -0.6 -1.1 -5.6 -- Premium Lager -0.4 -0.9 -4.6 --- Domestic Premium Lager -0.5 -1.0 -5.0 --- Imported Premium Lager 0.8 0.3 1.5 -- Mid-Priced Lager -0.6 -1.3 -6.3

B E E R I N G E R M A N Y P a s s p o r t 11

--- Domestic Mid-Priced Lager -0.7 -1.3 -6.5 --- Imported Mid-Priced Lager 0.5 -0.4 -1.9 -- Economy Lager -1.2 -1.8 -8.5 --- Domestic Economy Lager -1.2 -1.8 -8.5 --- Imported Economy Lager - - - Non/Low Alcohol Beer 2.4 3.0 16.1 - Low Alcohol Beer 0.6 0.9 4.7 - Non Alcoholic Beer 3.2 3.9 20.9 Stout 2.0 2.4 12.7 Beer -0.2 -0.5 -2.5

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 16 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023

% local currency, constant value growth 2018/2019 2018-23 CAGR 2018/23 Total Dark Beer 0.1 -0.3 -1.5 - Ale 0.0 0.1 0.5 - Sorghum - - - - Weissbier/Weizen/Wheat Beer 0.2 -0.5 -2.6 Lager 0.9 0.2 1.0 - Flavoured/Mixed Lager 4.1 3.5 18.9 - Standard Lager 0.4 -0.3 -1.4 -- Premium Lager 0.5 -0.3 -1.5 --- Domestic Premium Lager 0.5 -0.4 -2.0 --- Imported Premium Lager 1.5 1.0 4.9 -- Mid-Priced Lager 0.3 -0.2 -0.9 --- Domestic Mid-Priced Lager 0.2 -0.2 -1.0 --- Imported Mid-Priced Lager 1.4 0.5 2.6 -- Economy Lager -0.9 -1.1 -5.4 --- Domestic Economy Lager -0.9 -1.1 -5.4 --- Imported Economy Lager - - - Non/Low Alcohol Beer 2.8 3.6 19.3 - Low Alcohol Beer 1.0 1.7 8.8 - Non Alcoholic Beer 3.5 4.3 23.7 Stout 3.6 4.4 23.8 Beer 0.9 0.4 2.0

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources