E-Malt.com News article: 1920

Germany’s third-largest brewer, Radeberger Group AG, bought a 50 % stake in Stuttgart Hofbraeu Brau, media reported on December 10. Hofbraeu, which employs 265 people, said the deal was worth about 60 million euros (73 million dollars). "For the future, the contract provides Radeberger the opportunity to take a larger stake via fixed put and call options," Stuttgarter Hofbraeu said. The two brewers said that along with organic growth, they will also look to make further acquisitions in the region of Baden-Wuerttemberg.

Radeberger said on December 9 that it wanted “The Radeberger Group AG wants to play a continuing role in the consolidation of the German beer market.” Radeberger chief Ulrich Kallmeyer said he aimed to play an active role among future merger and acquisitions in the sector. Prior to the Haufbraeu buy, Radeberger had a war-chest of 170 million euros available for that purpose, according to the company.

The German brewing sector, long kept fragmented by families with controlling stakes while protected by strict regulations, is coming under stiff competition from foreign companies, sparking consolidation in the industry.

After Dutch brewer Heineken formed a joint venture in 2001 with Bavarian firm Paulaner und Kulmbacher, Belgian group Interbrew became the market leader in September by taking control of Spaten, another Bavarian brewer.

Danish group Carlsberg and German firm Bitburg are reportedly readying to buy Holsten, which had been the market leader and has said it is open to a foreign partnership.

Radeberger's owner, food group Oetker, had tried to make a joint bid with US private equity fund OEP for a big stake in brewer Brau und Brunnen. However, German bank HypoVereinsbank has decided to hold onto to its 62-percent stake in the brewer for the time being.


12 December, 2003