Belgian beer brewery Palm has not kept its promise to finish 2014 strongly, as lower beer consumption dipped the company into a 1.3 million euro loss. Nevertheless, the brewery is hopeful for its 2015 performance.
Palm not as popular anymore
For the past several years, Palm Belgian Craft Brewers has been looking for a new drive: the Palm beer has been in a steady decline since 1990 as it no longer appeals to a younger audience. Result: a 40 % drop in consumption. The company has launched several other beers over the past few years, to lower its dependence on the Palm brand.
It experimented with crafted beers: every year, it added a maximum of 4 new beers, brewed on a smaller scale of no more than 1,000 liters. If a beer is deemed successful, its production would be expanded.
It wanted to end 2014 on a high note thanks to all these changes, especially after the losses in 2012 and 2013. Despite its good intentions, its loss grew from 392,000 euro to 1.3 million euro. While it still managed a 27,000 net profit, it turned into a 440,000 net loss in 2014. Turnover also dropped 200,000 to 52.5 million euro.
"Similarly to our fiscal year 2013, we have also invested heavily in 2014, both in our assets as on an innovative level, which includes additional marketing and sales costs", Palm explains its numbers in a press release.
Lower beer consumption numbers in Belgium and the Netherlands have also prompted Palm to look towards export, with plenty of American opportunities for Rodenbach it feels. "The lower beer consumption and additional regulations will have their impact in 2015, but nevertheless, the brewery believes it can reach its financial objectives", Palm concludes.