Western Europe
“In 2024, we saw the full benefits of the acquired companies, Vrumona and San Giorgio in terms of the establishment of a solid multi-niche platform in the Netherlands and increased production and organizational capacity in Italy. Furthermore, Vrumona has paved the way for a new partnership agreement with PepsiCo in Belgium and Luxembourg in October 2024.“
Ilco Kwast,
Managing Director BeNeLux
Financial Performance
In 2024, volumes increased by 122% to 5.0m hectoliters significantly impacted by the acquisition of Vrumona in the Netherlands. Adjusting for this, volumes increased organically by 7%, primarily driven by growth in both France and Italy. Net revenue increased by 91% to DKK 3,316m, while the organic growth was 14%, adjusted for the acquisition of Vrumona in the Netherlands, and San Giorgio in Italy.
Development and initiatives in 2024
The Netherlands
In the Netherlands, we are predominantly active in the non-alcoholic soft drink segment with a strong emphasis on no/low sugar. We have a portfolio of own strong brands like Royal Club, Sisi, and Sourcy, and partner brands like Pepsi and Rivella. Notably, we are leaders in the adults’ soft drink segment with bitter lemon tonic and ginger ale, and we operate the complete beverage portfolio of PepsiCo in the Netherlands.
While total non-alcoholic beverage volumes (CSD, water and juice) were relatively stable in Off-Trade channel in 2024, the CSD segment was hit by the implementation of a consumption tax on January 1, 2024. Only non-flavored, non-carbonated waters are exempt from this tax. As a result, consumers are looking for cheaper options, and private label has grown at the expense of premium and mainstream brands. Also, consumption has moved towards non-flavored waters. Likewise, the On-Trade segment is in slight decline, mostly due to outlets closing as they have had to pay back COVID subsidies and are unable to afford staff costs.
In 2024, we have launched a new campaign for Rivella and a rebranding campaign for Pepsi. Also, we have rolled out functional enhancements in Sourcy vitamin waters and expanded the range of Royal Club mocktails.
As part of the integration with Royal Unibrew, we significantly geared up on our field force service and shelf initiatives in order to deliver more value to our customers. A lot of investments have been made to build a strong base for future growth and enhanced customer focus.
In 2024, we initiated a modernization and expansion of our production site and supported the Group in solving the supply constraints experienced in previous years.
Since October 1, 2024, Belgium and Luxembourg have been added to the Group with the takeover of the distribution of PepsiCo’s snack and beverage portfolio. We will leverage our footprint in the Netherlands and the partnership with PepsiCo to build up a meaningful platform and presence in BeNeLux.
Italy
In 2024, we increased our market share in the beer and CSD categories in all channels, On-Trade, Convenience, and Off-Trade.
In On-Trade, Ceres Strong Ale delivered high single-digit growth and outperformed the market, with an all-time high wholeseller-distribution and market coverage. Market stock levels have been balanced all year, with a sufficient level to ensure rotation and high quality.
In Off-Trade and Convenience, the Ceres brand outperformed the market in value growth, supported by strong marketing ATL/BTL campaigns throughout the year.
The consolidated pack/price strategy has continuously been implemented and improved, leading to an increased distribution with new channels activated and increased consumption at home. Thus, household penetration showed double digit numerical growth in 2024. Planned price increases have been rolled out for all categories.
The Lemonsoda range grew significantly for the fourth consecutive year and faster than the underlying CSD market, thus gaining market shares in all the segments (Lemonade, Orangeade and other flavors) with 11% in value, recorded as the fastest growing CSD company in the market. Packaging special edition cans, and new shapes in the PET-range supported the strong commercial focus in retailer promotions and in-store execution. Royal Unibrew’s zero range was driving the growth of the CSD category, with a significant share of the market increase for both Lemonsoda Zero and Oransoda Zero. In 2024, we successfully launched Lemonsoda Twist, which is an extension into lemon/lime, with a non-sugar version. Royal Unibrew has thereby brought the whole lemon/lime category back to growth after years of continuous losses.
We have sold less private label in 2024 than what we acquired to secure sufficient capacity for our own brands.
France
In France, we are predominantly active in Off-trade with our premium lemonade brand, Lorina and energy drink, Crazy Tiger.
Although the total market for non-alcoholic drinks lost volume in France in 2024, energy drinks was the only growing category, while volumes in lemonade were stable. We managed to grow and take market shares in both categories in Off-Trade and Convenience as a result of excellent execution.
In 2024, we improved the operational efficiency and profitability of our French activities significantly.
