Next Generation of Royal Beer Showcase - König Ludwig International PDF

Next Generation of Royal Creating a new FMCG Segment S h o w c a s e t o U n i v e r s i t ä t Tü b i n g e n...

Next Generation of Royal Creating a new FMCG Segment S h o w c a s e t o U n i v e r s i t ä t Tü b i n g e n November 14, 2024 König Ludwig International Member of Schloss Kaltenberg Group CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 1  KÖNIG LUDWIG INTERNATIONAL Key Facts + 500 NICE CLASS 32 TRADEMARK HRH PRINCE Trademark Holding RIGHTS LUITPOLD Company for all Royal Bavarian Beer Trademark rights: + Owned and run by and near-beer 500 trademark rights HRH Prince Luitpold brands in Nice Class in more than 100 of Bavaria, started in 32 countries 1979 LICENSEES/ +40 MARKETS FRANCHISEES Rights granted to 75M € Customer’s Profile: German brewing Licensees/Franchisee entity König Ludwig Total annual volume – independent local Schlossbrauerei ex licensed enterprises, Kaltenberg for breweries (2023): rounding off their export: currently 75M € portfolio with into +40 market international brand CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 2  ROYAL BAVARIAN PORTFOLIO From König Ludwig Beer Brands … KALTENBERG – ROYAL LAGER brewed since 1871 at Kaltenberg Castle Brewery KÖNIG LUDWIG DUNKEL – Royal Bavarian Beer Germany’s market -leadi ng dark beer brand KÖNIG LUDWIG WEISSBIER – Royal Bavarian Beer Finest wheat -beer made with the experience of 200 years of brewing privilege CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 3  BRAND HISTORY Duke Ludwig Duke elector King of Bavaria the severe (1253 - 1294) of Bavaria (1623 - 1651) (1825 - 1848) As far back as 1260, Duke Elector of Bavaria The first Oktoberfest Duke Ludwig the Severe Maximilian I is the can be traced back founded the first creator of the family to König (King) brewery of the House of monopoly on " We issb ie r" ; Ludwig I: it was Bavaria in Munich. lasting 200 years. held in honour of his wedding. LUDWIG DER STRENGE MAXIMILIAN I LUDWIG I 1229 – 1294 1573 – 1651 1786 – 1868 Since 1975 1493 – 1550 1756 – 1825 1845 – 1886 H. R. H. Prinz Luitpold von Bayern Prince of Bavaria Duke of Bavaria King of Bavaria King of Bavaria (1951) (1508 - 1550) (1806 - 1825) (1864 - 1886) This unique brewing The enactment of the König (King) Max I König (King) Ludwig II tradition is carried famous Bavarian Purity Joseph permitted continued to cultivate the on today by His Royal Law in 1516 by Duke breweries to serve Wittelsbach beer culture. Highness Luitpold Wilhelm IV is mandatory beer outdoors – and In 1868 he founded the Prinz von Bayern in for all German the beer garden was famed Brewing Science licensed breweries breweries up to today. born. Faculty at the Royal worldwide, a Polytechnic School in tradition that is Munich, today‘s TU symbolised by the Wittelsbach family WILHELM IV MAXIMILIAN I JOSEF LUDWIG II personal coat of arms on all logos. CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 4  BRANDS AND PRODUCTS Claimed: Royal Bavarian Beer Positioned in premium market segment, only; 2 international pillars: Key Competitors outside Germany: Heineken, Carlsberg, Budweiser, Tuborg 1) Exportmarket s KLI-portfolio reaches a market share in most of 2)Markets under License/Franchi se the markets of 1 -10% in this segment, from a profitable niche up to a key player CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 5  NEW MEMBER IN THE ROYAL FAMILY NEAR-BEER MARKET CONSIDERATION CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 6  Market Drivers Shift of Consumers‘ Behaviour Global changing consumer habits, trend to sober drives the segment. GCC increasing number of expatriates and tourists; As a result, the demand of non-acloholic beverages expanding distribution channels; is expected to increase significantly in the forecast trend to consume craft non-alcoholic beers years due to the increasing availability of flavoured non-alcoholic options and the strict regulations on strict regulations on the consumption and production alcoholic drinks.. CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 7  NEAR-BEER Market Potential Global Malt Beverage Market will rise up to 19 billion USD in 2032; at a CAGR of 10,1% GCC non-alcoholic beer market is projected to grow by 5,41% CAGR, resulting in a market size of 132 million USD in 2032 2,3 mio hl in premium segment for clear malt drinks in 2019 CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 8  NEAR-BEER Definition Non-alcoholic malt is a beverage made from malted barley, which is the same primary ingredient used in beer production. Most brand offer styles which are infused by fruity flavours. The key difference is that non-alcoholic malt is brewed in a way that minimizes or entirely eliminates the alcohol content, typically containing less than 0.5% alcohol by volume (ABV). Halal requirement: None of the used equipment, raw materials, packaging, has ever touched alcohol, hence halal malt drink has 0,0% abv. CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 9 NEXT GENERATION OF ROYAL BREWED NOT STIRRED Seite 10  NON-ALCOHOLIC BEER MARKET "NEAR BEER” INTERNATIONAL BREWING LUDWIG‘S GROUPS ARE OFFERING w as a term for malt MALT DRINKS Ein Bild, das Kunst, Symbol enthält. b everages contai ni ng li ttle or Automatisch generierte Beschreibung no alcohol (less than 0.5% Anheuser-Busch A B V) , w hi ch w ere mass - Asahi Breweries mark eted du ri ng Prohi b i ti on Bavaria Brewery i n the Uni ted States. Near Ceres Brewery b eer cou ld not legally b e Fayrouz lab eled as "b eer" and w as MolsonCoors Moussy offi ci ally classi fi ed as a Guinness Nigeria "cereal b everage". Nestle SA Suntory International Corporation 1919 Marketleading Malt Drinks Royal Malt CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 11  GCC NON-ALCOHOLIC BEER MARKET Market Shaping Brands Major players operating in GCC non-alcoholic beer market KEY PLAYER KEY MALT BRAND (apart from 0,0 beer brands offered by Bavaria, Holsten …) Heineken Fayrouz Enhance their market share reaching out for various ABI Prohibition Brew strategies, including M&A, partnerships, joint ventures, Guiness Malta license agreements, and new product launches. Aujan Coca-Cola Barbican Beverages Carlsberg Moussy Consequently, local players are recommended to uograde/round-off their portfolio for the sake of competiteveness in the most profitable premium segment. CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 12  GCC NON-ALCOHOLIC BEER MARKET Shift of Market Drivers Increasing number of expatriates and tourists Expanding distribution channels (retails chains, Trend of consuming craft non-alcoholic beers such as Moussy and Barbican in microbreweries Strict regulations on the consumption and production of alcoholic beverages in the UAE and Saudi Arabia, shifted preference towards non-alcoholic beer, as it offers a similar flavor profile to alcoholic beer CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 13  NON-ALCOHOLIC BEER MARKET Some Market Considerations Global NA-Beverage Market will rise up to 19 billion USD in 2032; 2023: 17 bill€ GCC non-alcoholic beer market is projected to grow by 5,41% CAGR. 378 M€ per 2023* Soource: Global Date Oct 2024 CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 14  GCC NON-ALCOHOLIC BEER MARKET Price Points Remark: Statista includes as RTD with beer and flavoured beers up to 0,5% abv (not included in Global Data survey) CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 15  BUSINESS ASSUMPTIONS COGS/ 100 l manufacturing costs 20 € Price ex brewery + 200 € Packaging costs 25 € End consumer price + 400 € Total 45€ CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 16  REACHING OUT FOR THE ROYAL TARGET GROUP CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 17  THE ROYAL TARGET GROUP CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 18  THE ROYAL LET’S FOCUS ON MAX TARGET GROUP After conducting analysis for several countries, KLI identified two main archetypes Traditional Maximalists. Progressive Maximalists. Innovators of traditional lifestyles Bigger is better. Import luxury trends CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 19  COOPERATION FRAME Franchise CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 20  QUALITY GUARANTORS EXCLUSIVE ECOSYSTEM PARTNERS An exclusive alliance ensuring Highest and consistent quality Operational excellence Roadmap from initial feasibility considerati on to full operation for a seamless market entry. CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 21  OVERVIEW AND TIMELINE 1. 3. 5. 2. Feasibility 4. Execution Opportunity Concept Operations Better understanding of Clarification of Detailed planning Construction and Go-to market and (investment) Objective investmemnt of investment and preparation of go- ensure operational purpose and options market preparation to-market excellence decision on next steps Contract for Contract for concept and Contract for feasibility phase execution phase operation phase License agreement CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 22  BREWED NOT STIRRED With the scents of Royal Bavaria CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 23  THANKS FOR LISTENING BEATE HAIMERL-NEUBAUER VP STRATEGIC MARKETING K Ö N I G LUD W IG I N TER NATIO NAL CONFIDENTIAL – PROPERTY OF KÖNIG LUDWIG INTERNATIONAL GMBH & CO.KG PAGE 24