Antwerp’s Bolleke target for takeover?

Antwerp is under attack both from within Flanders and from across the border in the Netherlands. That, at least, is how the city’s beer lovers see it. Their beloved bolleke – the name for the bulbous glass from which they drink De Koninck beer, hence, the nickname for the beer itself – is the subject of a hostile takeover bid from both Heineken, the Dutch pils giant, and Duvel Moortgat, based in Puurs, Antwerp province.

De Koninck, the company stresses, is not for sale. Bernard Van den Bogaert, who runs the company with his brother Dominique, said last week they were “looking for strategic co-operation” to help increase exports from the current level of 35% to 50%. And he admitted that he had been in discussion with “colleagues” from Duvel Moortgat and Heineken. “I can put everyone’s mind at rest,” he told De Standaard. “I have received no offers.”

But the rumours persist. Are the two interlopers eyeing up De Koninck? The company, an Antwerp institution which still brews in its original building in Berchem, could be a ripe takeover prospect. Once, production stood at 140,000 hectolitres a year. Now they’re lucky to reach half of that. The beer market overall is suffering, and De Koninck is no exception.

De Koninck has only half a percent share of the Belgian beer market – not much room for negotiation when things get tough. And it is mostly drunk in cafes, exactly where beer consumption is going down.

But they do have a couple of strong cards: a castiron brand loyalty and a portfolio of about 100 cafes and other properties in prize positions in Antwerp. Neither of the two “colleagues” has a beer like De Koninck in their range, which is good news for devotees because it makes it extremely unlikely either Heineken or Duvel Moortgat would mess with the recipe.

(June 23, 2010)