Borsodi Brewery: Less Beer Sold But Employees Retained

Although Borsodi Brewery's results last year fell short of the previous, highly successful year, the company was able to retain all its employees despite the challenges caused by the coronavirus epidemic, the company told the Hungarian state news agency MTI.

According to publicly available data, the net sales of Borsodi Brewery in 2019 were HUF 44.6 billion (of which domestic sales were HUF 41.7 forints and export sales HUF 2.89 billion), up about 10% year-on-year. The company's operating profit was HUF 828 in 2019, up from HUF 202.5 million in the previous year. The company, which employs 420 people, has not disclosed last year's figures for the time being, saying only that in line with market trends, turnover fell by almost 7.5% compared to 2019, and by 9.7% domestically.

It was stressed that the complete stoppage of tourism and catering, as well as the cancellation of sporting events and festivals, had a major impact on the business results of Borsodi Brewery – these affected the cask beer market in the HoReCa (Hotels, Restaurants, Cafés) segment, which saw sales volumes drop by almost half.

In response to a question from MTI, the company said that despite the outbreak, it completed its three-year, EUR 12 million investment in 2020, expanding the capacity of its Bőcs Borsodi plant to 2.5 million hectoliters per year.

This year, the company plans to focus mainly on logistical improvements, while also concentrating on expanding its portfolio. They pointed out that the popularity of non-alcoholic products is growing, and comparing the results of last year and 2019, this segment performed the best. This is one of the reasons why Borsodi Brewery is continuously expanding its non-alcoholic Borsodi Friss portfolio, this year with the addition of apple-cider flavor.

It was also reported that trends show that beer consumers are looking for high quality beverages, and in response, the company introduced a new portfolio in 2020, consisting of the citrusy, hoppy Borsodi Hoppy hop lager and Borsodi's first top-fermented beer, Borsodi IPA. This year, the range has been further expanded, with a range of fruit-flavored beers called Borsodi Ale being released and will be released later this spring. The reception of the new products has been positive so far, Borsodi Brewery said.