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In the end we had to swing for a long time. Since mid-February, a solution has emerged to save the financially overextended Winterthur brewery Chopfab Boxer. But Appenzeller brewery Locher only wanted to get involved if all creditors agreed on the haircut.
Now the situation is clear: Locher injects money and takes over the majority of the shares. The general managers of the two breweries confirmed this in an interview with “Handelszeitung”. Both sides remain silent on the exact circumstances. Employees and business partners were informed about the acquisition today, Friday.
Negotiations were difficult because Locher made waiving the demands a condition. “We felt a lot of goodwill among our business partners,” says Locher managing director Aurèle Meyer. Only government bills such as Chopfab Boxer’s unpaid VAT cannot be compromised. “But it was actually obvious,” said Philip Bucher, boss of Chopfab Boxer.
This article was first published on the paid service of handelszeitung.ch. Blick+ users have exclusive access as part of their subscription. You can find more exciting articles at www.handelszeitung.ch.
This article was first published on the paid service of handelszeitung.ch. Blick+ users have exclusive access as part of their subscription. You can find more exciting articles at www.handelszeitung.ch.
Operationally, many things remain the same for now. Meyer and Bucher assured that Chopfab Boxer would remain owned by Locher and that there would be no change in management or locations of operations. But Locher’s boss Meyer and brewery owner Karl Locher are joining the Winterthur subsidiary’s board of directors.
Red numbers since Boxer’s takeover
The loss of independence marks the end of the legendary rise of the brewery, which entered the business as “Doppelleu” in 2013 and became one of the ten largest breweries in Switzerland in just a few years. According to HZ research, Chopfab Boxer recently ranked sixth with a market share of 3 to 4 percent.
Chopfab’s collapse was due to its increased level of debt, especially after the rise in interest rates. Financing with large amounts of borrowed capital allowed rapid growth, but was ultimately no longer profitable. Bucher says they were still undecided in 2017 and 2018. This was followed by the takeover of the Boxer brewery in western Switzerland and then Corona; This meant that Chopfab suffered losses.
And so Locher probably overtook beer company Heineken, which had previously placed second with two breweries in Chur (Calanda) and Lucerne (Eichhof).
One of Switzerland’s largest breweries is in Appenzell
Locher has long been a giant among Swiss brewers, with a large number of breweries. Locher operates two breweries in Appenzell: a small brewery in the historic company headquarters and a large brewery on the edge of the village, where, among other things, the mass-produced “Quöllfrisch” beer is produced. Chopfab Boxer brings with it two breweries: a factory in Winterthur and a second factory in Yverdon for the Boxer subsidiary acquired in 2017. But that’s not all.
The people of Appenzell gradually extended their influence over the Egger brewery in Bern. First only as a production partner during the renovation of the brewery in Worb, then more recently with capital. Meyer says they are financing space for the planned new building and are also investing in the Egger brewery. It is not yet clear whether Locher has a majority over Egger. Meyer categorically denies rumors that the new building is involved. “The project is ongoing and has nothing to do with Chopfab’s involvement.”
The new brewery group’s network also includes a branch in Engadine. Even before Chopfab Boxer got into trouble, the Winterthur brewery became a partner of Bieraria Tschlin AG, which produces “Biera Engiadinaisa”. Since then, Grisons beer has not only been sold through Chopfab Boxer, but some of it has also been bottled through them; Chopfab’s founder, Philip Bucher, has also served as Chairman of the Board since last year.
As the “Handelszeitung” investigation shows, it was originally planned that Chopfab would also contribute financially within the scope of the renovation works in Tschlin. Accordingly, there was a plan for Doppelleu to take over the majority within the scope of the capital increase in 2022. But that didn’t happen anymore. “There is no participation, just a cooperation agreement,” explains Bucher. The beer is jointly distributed and bottled at breweries in Winterthur and Yverdon. “Everything brews in the Engadin.”
And so at least six breweries are associated or associated with the Locher brewery. There are also those in the industry who produce Locher or have their products filled by Locher. Not everyone who sells beer in this country has their own brewery. Locher’s clients include the Nubia and Calvinus brands, and Chopfab brews beer for Storm & Anchor in Winterthur. Locher’s boss, Meyer, says there are about ten such partners in total.
The brewing industry is in consolidation
It is no coincidence that the merger is happening now. The corona crisis has left deep scars on the brewing industry, as is becoming increasingly evident. Sales initially collapsed as many restaurants remained closed for long periods of time. Then costs increased. First due to supply bottlenecks, then due to the war in Ukraine, which caused the prices of energy, raw materials and glass bottles to rise (there was an important factory for Switzerland in Ukraine).
There is now consolidation in a market that was known only for enthusiasm in previous years. Beer consumption per capita in Switzerland has remained stable for a long time. However, on the one hand, immigration caused an increase in general demand. On the other hand, the increasing diversity of breweries and beer types meant drinking more local and less imported beer. And recently not only the number of breweries has increased, but also domestic production. And: Many Swiss are increasingly turning to higher-priced specialties instead of cheap beer.
But the brewing boom is over, at least according to statistics. While there were 1,278 breweries registered with the federal government at the end of 2021, this number dropped to 1,192 by the end of 2023. It is unknown whether the deleted breweries were commercial breweries or hobby businesses. The responsible Federal Office for Customs and Border Protection, on the one hand, justifies this decline by “the Covid pandemic and/or higher production costs”, but at the same time states that the statistics have not been changed in any way within the scope of the digitalization of breweries. now had the relevant production.
Brewery Association Director: “Traditional patron table culture is gradually disappearing”
Association director Marcel Kreber also talks about consolidation. On the one hand, it touches upon the changes in consumer behavior as well as the conditions in question that have made life difficult for companies recently. “The traditional patron culture is gradually disappearing, and the generation that follows it is more demanding.” The discovery period of the last few years is over, now it is also important for new breweries to ensure reliability and quality. “People now have an idea of what India Pale Ale should taste like.”
One thing is clear: There has been a movement lately not only among small breweries, but also among mid-sized breweries. Baden brewery Müller gave up its own brewery in 2021 and now produces the bulk of its beer at Falken in Schaffhausen. A small brewery remains in Baden for local consumption. Legendary brewer Martin Wartmann’s Fischinger Klosterbrauerei has also expanded its collaboration with Falken. As Wartmann confirms, the Schaffhausen-based company is producing more and more canned beer under the Pilgrim brand. Falken was one of the first breweries in Switzerland to have a canning system and has been helping other breweries with bottling and contract brewing for years.
And so the Swiss market is now quite concentrated. The five largest brewery groups produce approximately 90 percent of Swiss beer: Feldschlösschen/Carlsberg, Locher/Chopfab, Heineken, Ramseier and Schützengarten. 97 percent of the beer comes from the 37 largest breweries in the country, organized into breweries unions.
Synergies between Chopfab and Locher are now being explored
Those involved say initially nothing will change in the structures at Locher and Chopfab Boxer. Places should not be cancelled. But one thing is clear: copies should be avoided in the future. Chopfab was planning to build an expensive can filling plant in the near future. These plans have now been cancelled. Locher’s boss, Meyer, says the primary aim is to consolidate purchasing and use synergies in sales. “We appeal to a wide range of people with our brands; “All of our brands are well-established and successful.”
Meyer adamantly denies an industry rumor: Owner Karl Locher wants to one day sell or take the impressive family business public. Meyer, the company’s boss, says we are in a good position and we don’t have a plan for it. And he adds: “I’m too Appenzeller for that.”
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
