FDBusiness.com

Bavaria, the largest independent brewery in the Netherlands, has acquired a 60% majority interest in Belgium-based Palm Belgian Craft Brewers for an undisclosed amount. The Palm Belgian Craft Brewers brewery group has a joint production capacity of one million hectolitres and sales of €53 million. Bavaria has an annual production of more than 6 million hectolitres of beer, 65% of which is exported, and net sales of more than €400 million.

The acquisition is in line with Bavaria’s strategy to become the ultimate portfolio player. For Palm Belgian Craft Brewers the co-operation means a strengthening and acceleration of the growth strategy that has already been initiated. Palm Belgian Craft Brewers has a wide assortment of specialty beer brands, including Palm, Rodenbach, Brugge, Steenbrugge, Cornet, Arthur’s Legacy and Estaminet.

Bavaria is active in 120 countries, with brands such as Bavaria Premium, Swinckels’ and 8.6. By merging with Bavaria, Palm Belgian Craft Brewers will gain access to Bavaria’s international network, and Bavaria will increase its access to Belgian retail channels and the hospitality sector. In the months to come, both parties will work on merging the two family-owned breweries.

Jan-Renier Swinkels, head of the board of Bavaria, comments: “Belgium is the pre-eminent specialty beer country. We are proud of this cooperation and the merging of two wonderful family-owned companies that each have a centuries-old history. Palm Belgian Craft Brewers has developed a rich assortment of specialty beers during this time. This assortment is complementary to our brands, which is why this cooperation fits with our strategy of becoming the ultimate portfolio player. Palm has an important position in the Dutch market, and we see opportunities for further international growth.”

Palm Belgian Craft Brewers will be a part of Bavaria, which will increase its ownership to 100% by 2021.

Jan Toye, owner of Palm Belgian Craft Brewers, says: “This is an important milestone for us. Brewing Belgian specialty beer has been our family tradition since 1686. After Palm’s strong growth, we strengthened our position through a number of acquisitions and innovations. In order to maximise our international distribution power, we went in search of a strategic partner, and Bavaria immediately felt like a ‘perfect fit’ due to the many synergies we encountered.”