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Hengstenberg: How the sauerkraut market leader dominates the market

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Hengstenberg: How the sauerkraut market leader dominates the market

Hengstenberg conquered the sauerkraut market with an innovation. Adobe Stock/Hengstenberg

The Swabian family business Hengstenberg is the German market leader for vinegar, pickles and sauerkraut. It was the first manufacturer in the world to bring pasteurized sauerkraut onto the market in 1932.

Sauerkraut is considered a typical German side dish. But in terms of per capita consumption, countries like the USA and France have now surpassed Germany. Nevertheless, the majority of Hengstenberg’s sales are still generated domestically.

Although sauerkraut is being eaten less and less in Germany, Hengstenberg is trying to counteract the trend with new products. This includes, among other things, barbecue sauerkraut.

“Sour makes you funny” – that’s actually true. Because when this saying was coined around the year 1700, “funny” still meant something like “to feel like doing something”. Because: Acid increases appetite. At least that’s what the food manufacturer Hengstenberg writes on its website Website.

Sauer – that is the core brand of the 140-year-old Swabian family company. Whether sauerkraut, vinegar or pickles: Hengstenberg is one of the market leaders on German canned food shelves. To this day, the company is 100 percent family-owned. However, external managers are now taking over management. But the sauerkraut business has a demographic problem. According to the “Frankfurter Allgemeine Zeitung“(FAZ) 66 percent of all German buyers 50 years and older.

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Sauerkraut: A German Tradition

Is there a more German dish than bratwurst with sauerkraut? Before people spoke of the German potato, the term Kraut was a common name for the stereotypical German, especially in the USA. Today the expression is hardly used anymore. And the herb is now enjoying greater popularity elsewhere. Both the United States and France have loudly Hengstenberg higher per capita consumption.

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We have the Hengstenberg family company to thank for the fact that sauerkraut is available ready-to-eat at any time of the year. In 1932, the Esslingen company brought what it claimed was the world‘s first pasteurized sauerkraut onto the market. The short-term heating – i.e. pasteurization – increased the shelf life enormously. In canned form, the processed white cabbage lasts for several years.

Hengstenberg: These brands belong to the family company

The entrepreneurial one began Success story the Hengstenberg family with vinegar, pickles and later also mustard. Richard Alfried Hengstenberg invested in a vinegar factory in 1876. He is said to have spent his wife’s entire dowry on this. After his partner left, he initially expanded the range to include tomato seasoning and later to include the aforementioned sauerkraut, which is still one of the Hengstenberg classics today.

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With this innovation, Hengstenberg heralded its future brand policy. “Altmeister”, a brand for vinegar in handy bottles, was created in the early 1950s. In 1953, sauerkraut became its own line. By the way, her name “Mildessa” comes from the words mild sauerkraut. “Rotessa” followed later. You can already guess what it is: canned red cabbage.

However, Hengstenberg didn’t want to stop at classic German cuisine. The food manufacturer has been offering numerous tomato products under the Oro di Parma brand since 1967. Its typically Italian design hardly shows that it belongs to the Swabian family business. You’ve probably already tried Oro di Parma tomato paste or sauce. In Germany, the Hengstenberg brand is the market leader for tomato products. Oro di Parma contributes around 30 percent of the company’s sales, as the “FAZ” reported.

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But the food manufacturer can also score points abroad with its typically German products. You can buy “Sauerkraut Bavarian Style” in the USA or Japan. Nevertheless, the majority of sales are generated domestically. According to the group management report, this amounted to 151.6 million euros in the 2021/2022 financial year, which corresponds to a slight increase compared to the previous year. Less than ten percent of sales are generated abroad.

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The fifth generation now sits on the company’s board of directors, including cousins ​​Philipp and Steffen Hengstenberg. According to information from the “FAZ”, twelve shareholders shared the company’s ownership in 2018 – all of them come from the Hengstenberg family. However, there has been no family member on the management board since 2020. Aymeric de la Fouchardiere currently holds the position of CEO. He previously worked at Bonduelle.

While pickles have more or less stable sales, sauerkraut is being eaten less and less in this country. According to a report by “Food newspaper“Sales in the overall sauerkraut category fell by 12.3 percent in mid-2023 compared to the previous year. A possible reason: In 2018, according to “FAZ”, 66 percent of sauerkraut buyers were over 50 years old. Meanwhile, the market leader is trying to counteract this development. In recent years, Hengstenberg has brought a barbecue range – including barbecue sauerkraut – onto the market.

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