Increased interest rates and high raw material and energy prices are causing problems for Chopfab Boxer AG. Without fresh capital and further restructuring measures, a strong brand is at risk of extinction. Rescue is approaching from Appenzell.
The Chopfab founders Philip Bucher (left) and Jörg Schönberg are struggling with money problems after rapid growth.
PD
When it was founded ten years ago, the Chopfab brewery brought new impetus to the Swiss beer market. Lager beer dominated the store shelves. But the founders Philip Bucher and Jörg Schönberg managed to make craft beer appealing to the Swiss. Sales of the young brewery, which was previously called Doppelleu, multiplied quickly.
However, the Chopfab Boxer AG brewery with locations in Winterthur and Yverdon is currently struggling with serious financial problems. “Without restructuring measures, the continued existence of the company is not assured,” said Bucher on Tuesday the “Handelszeitung”.
Extremely rapid growth leads to problems
Chopfab’s distinctive black (and other colored) cans are very present on the shelves of Swiss retailers and kiosks. Since taking over Boxer in 2017, the company has also been present in French-speaking Switzerland. “The brands are very popular, the products are successful, and the quality has won many awards,” says Bucher. Accordingly, the sales figures would also develop well compared to the overall market. So where do the problems come from?
The financial difficulties come from the fact that Chopfab grew extremely quickly. «Since the company was founded, we have been forced to continually adapt capacities to sales growth. This has led to a high mountain of debt,” explains Bucher in an interview with the NZZ. The last and largest investment is a new tank system, whose construction began during the corona pandemic.
The rapid growth slowed from 2020 due to the pandemic. Since then, it has not reached the pre-pandemic level. At the same time, they were faced with high costs that could not have been covered. On the one hand, these are due to the increased prices in the energy and raw materials sector, and on the other hand, the margin has come under pressure due to the increased interest rates.
Positions and locations should be retained
The new money from the Locher brewery, known for its Quöllfrisch beers, is now intended to stabilize day-to-day business. In return, the family company from Appenzell receives shares. The two companies do not disclose the exact amount. “It is clear that this will be a long-term partnership,” says Bucher.
The negotiations, which have been ongoing since October, have not yet been completed. There are already commitments from banks to cut debts. The previous shareholders of Chopfab Boxer had also signaled that they would waive loan claims. Negotiations are currently underway with suppliers. Bucher hopes that it will be possible to communicate at the beginning of March whether the renovation will be successful.
Chopfab Boxer’s approximately 90 employees were informed about the restructuring plans on Tuesday. Bucher assumes that no additional jobs would be lost. The brewery had to cut a fifth of the jobs in the summer of 2023. Closing a location is also not an option, according to Bucher, because of the brands’ strong regional roots.
The managing director of the Locher brewery, Aurèle Meyer, also wants to save jobs and locations if possible. “We are now trying to do everything we can to save Chopfab Boxer,” he told the “Handelszeitung”. Meyer is convinced that the two breweries would complement each other well. Bucher from Chopfab also sees the Locher brewery as an “ideal partner”. The geographical distribution of the respective brands in particular ensures a good complement.
Demand for beer decreased
The demand for beer has recently fallen in Switzerland. In the 2022/23 brewing year, which runs until the end of September, output fell by 2.5 percent to 4.57 million hectoliters of beer compared to the previous year, according to figures from the industry association.
“The environment for breweries has become harsher,” says Marcel Kreber, director of the Swiss Brewery Association, when asked. In view of the effects of the pandemic measures and the increased raw material and energy prices, the clouded consumer sentiment is also a challenge for the industry.