Over a ten-year master plan, Dreher Breweries is set to undergo a complete transformation. The first phase of this extensive investment, totalling approximately 100 billion forints and requiring 30 billion in financing until 2025, will see the creation of a new energy centre and the replacement of fermentation and conditioning tanks. Subsequent phases will involve expanding warehouse capacity and renewing the brewing house. The 170-year-old Kőbánya brewery is replacing outdated technology in a manner that promotes sustainability goals, Index reported.
Next year marks the 170th anniversary of Dreher Breweries, which will embark on its largest-ever investment programme, valued at over 100 billion forints. Such a massive development in the history of Hungarian brewing has never been seen before. Approximately 30 per cent of the required funds, roughly 30 billion forints, have already been secured by the parent company, Japan’s Asahi.
Bidding farewell to outdated technology, the comprehensive infrastructural refurbishment of the historic Kőbánya brewery enhances efficiency, competitiveness, and
contributes to sustainability goals by reducing energy and water consumption and carbon dioxide emissions through modernized equipment and technology.
The first phase of the ten-year master plan, spanning from 2024 to 2026, begins with the construction of the new energy centre in January, followed by the replacement of fermentation and conditioning tanks.
The increase in returns in recent years laid the foundation for Asahi’s approval of this investment. The upgrade involves replacing outdated technology while minimizing environmental impact. This suggests that Dreher Breweries, following its 170th anniversary, can confidently look beyond its founding to its bicentennial and beyond, as stated by Gábor Békefi, the CEO of the Hungarian brewery, in an interview with Index. Further steps in the master plan include increasing warehouse capacity and renewing the brewing house.
Gábor Békefi also emphasized that during the execution of the newly announced investment, they will pay special attention to the ‘From Dreher to Dreher’ heritage-building philosophy. In addition to introducing innovations, they aim to preserve Hungarian brewing traditions. Dreher, which contributes nearly 422 million litres of beer annually to Hungarian beer consumption, is of significant importance. The company employs nearly 600 people and indirectly supports the livelihoods of more than 11,000 families in the fields of hospitality, logistics, and marketing. Moreover,
86 per cent of Dreher’s suppliers are Hungarian small and medium-sized enterprises.
The company annually contributes more than 17 billion forints to the state budget in excise tax, VAT, product fees, and other contributions.
With all signs pointing to a strong relationship between Dreher and its parent company, Asahi, the brewery is poised to build on its success. Asahi entered the life of the Kőbánya brewery in 2017 after AB InBev acquired SABMiller, leading to a change in ownership and a management change in the Hungarian brewery. The new management focused on the heritage-building philosophy, which, just like before the nationalization in 1948, concentrates on premiumization and the combination of tradition and modernity in operations, product development, and corporate culture. In recent years, the company has had to bring its corporate strategy closer to consumer needs to improve profitability, not just revenue growth. Favourable investment decisions are essential within a brewing conglomerate. For example, the previously mentioned increase in can-filling capacity allowed Dreher not only to reduce its need for imports but also to demonstrate its capabilities as an exporter within the corporate group.
Sources: Hungarian Conservative/Index