COVID-19 Impact on Radeberger

Summary

COVID-19 Impact on Radeberger July 10th, 2020 based on market analysis and brand diversification by industry and geography

Radeberger's over-reliance on its alcoholic beverages business and the West Europe region implies that the company will suffer due to the COVID-19 outbreak. Currently, the sales of packaged water looks like a glimmer of hope. The share of package water sales is very small compared to the company's core beer products, which is unlikely to support the losses generated in the beer business in 2020. However, potentially, the greater focus on its packaged water business may help to mitigate the losses slightly.

Scope

• Radeberger's heavy reliance on Western Europe and lack of product diversity is expected to hit its business hard
• Germany is Radeberger's home market, and the country aims to support beer companies
• Radeberger's over reliance on alcoholic beverages puts it in a position of disadvantage amid the pandemic
• The cancellation of Oktoberfest and other beer festivals is liable to hurt the company's sales in the sector
• The company's limited geographic presence and lack of diversification in the soft drinks sector will hurt its 2020 volumes

Reasons to Buy

• Understand the challenges and opportunities for a specific company in order to tap into what is really impacting the industry.
• Gain a broader appreciation of the industry by gaining insights from both within and outside of your sector.
• Access valuable strategic take-outs to help direct future decision-making and inform new product development.