Warsteiner is investing EUR 11 million in the expansion of its production plant for budget beers in Paderborn. The Haus-Cramer Group, also known due to its flagship brand as the Warsteiner Group, which ranks among the top 10 brewery groups in Germany, confirmed today that the capacity of its Paderborner Brauerei be expanded by 25% to reach 1.25 million hectoliters in the near future.
The situation in the beer market is extremely challenging, as highlighted by Jens Hoffmann, the group's technical managing director, today. Rising costs are coinciding with a declining demand for many breweries. However, the Paderborner beer could benefit from the tense economic situation because consumers are currently opting for a beer that falls within the entry-level price range due to the high inflation and increased cost of living, suggests Peter Böhling, the Chief Marketing Officer.
This expansion is primarily aimed at creating the necessary production capacity for the new product Paderborner Hell, which was launched three weeks ago, and for which the group has ambitious plans. The beer is priced at EUR 8.99 for a 20x0.5 returnable crate or EUR 0.69 for the 0.5-liter can, positioning it below comparable competitor products.
Approximately EUR 8 million will be invested in the production expansion over the next three years. This will include the installation of a total of eleven new fermentation, storage, and pressure tanks. Additionally, around EUR 3 million will be invested in a new packaging center for glass bottles and cans, which is set to launch in spring 2024.
While Warsteiner, the group's main brand, has lost about two-thirds of its output since its zenith in 1994 with around 6 million hectoliters and has only recently begun to recover, the group's budget subsidiary has been operating close to its capacity limit for some time.
In May, the brewery also announced a 20 million euro investment in its other subsidiary, Herforder Brauerei, with 15 million euros dedicated solely to a new bottling plant (inside.beer, 14.5.2023).