Dutch brewery Bavaria has already reaped the rewards from acquiring its Belgian competitor Palm: turnover spiked and despite further investments, profit also grew.
7 million hectoliters
Bavaria’s 2016 turnover grew from 531 million euro to 610 million euro, largely thanks to Palm Belgian Craft Brewers’ turnover. Net profit grew 3 million euro to 33 million euro, despite the additional investments (from 34 to 51.1 million euro). All in all, the company brewed more than seven million hectoliters of beer, sold in more than 130 countries.
“The acquisition of Palm Belgian Craft Brewers was without a doubt the highlight of 2016. The merger of two family businesses was a unique moment in our history. We proudly added the rich assortment of specialty beers of Palm Belgian Craft Brewers to our portfolio”, CFO Frank Swinkels said.
The acquisition already resulted in several synergies: Palm beers are now available in several Bavaria markets and more of Bavaria’s beers are now also available in locations where Palm was previously present. The IT integration still has not been completed and the current purchase contracts have not been renewed yet, meaning there is still room for more synergy.
By 2020, Bavaria hopes to have surpassed the billion euro turnover milestone. By that time, it should also have saved 10 % per year on energy, water, waste water, garbage and packaging.
