Spirits in the 13th Generation
Interview with Dipl.-Kfm. Dirk Hasenbein, Managing Director of Schwarze und Schlichte GmbH & Co. KG
The fact that Schwarze und Schlichte GmbH & Co. KG, one of the oldest spirit manufacturers in Germany located in Oelde, Westphalia, continues to successfully hold its ground in the market today is also due to its ability to adapt to changing times. A few years ago, the company realigned its strategy towards a younger, quality-conscious target group – a move that has proven to be correct. This is impressively underscored by the gains the company has made against the general industry trend.
Wirtschaftsforum: Mr. Hasenbein, the origins of today's Schwarze und Schlichte GmbH & Co. KG go back several centuries. How has the company managed to survive so long and so successfully?
Dirk Hasenbein: We have existed for 360 years. Throughout our entire history, we have focused on quality and have consistently proven this. Over time, we have earned a very good reputation. As important as quality is reliability, which for us means punctuality in delivery and adherence to delivery promises. We also have very good payment morals and settle our invoices promptly. In addition, our extensive portfolio comes into play: hotels and bars, for example, appreciate our range of vodka and aperitifs. For instance, with our Three Sixty vodka and Déjà-Vu aperitif, we have attractive products. In trendy bars and hotels, we also like to invest, for example in branded glasses, to increase our visibility. Popular clubs are also equipped by us with a DJ booth or a bar that we have custom-built.
Wirtschaftsforum: You mentioned attractive products. Please tell us about your portfolio of spirits.
Dirk Hasenbein: Our range includes over 50 brands. We focus on a few brands that we believe have good potential. This works very well. Our focus is on young, fresh brands in the premium segment. Here I would like to mention our Three Sixty vodka, but also our gin brand Knut Hansen, which is developing very well. Besides our own brands, we are also import partners, for example for Molinari Sambuca. Every bottle goes through our hands; we handle the distribution and marketing. In this, we invest little in brands like Schwarze Frühstücks Korn, which is named after the owners, and instead selectively build up certain brands. The good thing is that all shareholders support this strategy. This is not a given.
Wirtschaftsforum: You mentioned your own brands and brands for which you are responsible for importing. Are there further diversifications?
Dirk Hasenbein: We differentiate between our National Brands, the Import Brands, and the regional Local Stars. Our National Brands include our premium vodka Three Sixty, the aperitif brand Déjà-Vu, Soda Libre soft drinks, Shatler’s Cocktails, and the gin Knut Hansen, the whisky Racke Rauchzart, the brandy Dujardin Imperial, and the coffee liqueur Kosaken Kaffee. In addition to Molinari, we carry other import brands such as Cazcabel Tequila, Torres Brandy, the Chilean El Cobernador Pisco, and Limoncello DICAPRI. Among our Local Stars are additional brands including our namesakes Schwarze Frühstücks Korn and Original Schlichte.
Wirtschaftsforum: Let's take a look at the history. How has the company developed since its founding?
Dirk Hasenbein: We are now in the 13th generation and thus one of the oldest spirits manufacturers in Germany. Over the past 15-20 years, we have evolved from a regional grain distillery to an international marketer of spirits. At our peak, we sold about 6 million Schwarze Frühstück Korn. As the grain market is declining, we began diversifying and initially purchased the Schlichte brand. With it, we had two traditional brands in our portfolio, both of which were experiencing declining sales. From 2011, we therefore changed our strategy and since then have been purchasing younger brands with potential. One of these brands is Three Sixty Vodka, today our bread-and-butter brand. Of the current 16 million bottles we sell annually, 10 million are just Three Sixty. This makes us the market leader in Germany in the vodka category priced over 10 EUR. Additional acquisitions were Pepino Peach—a fruity liqueur with peach flavor—from Ricard, Shatler’s Cocktails in cans, Soda Libre—a soft drink in flavors like basil, raspberry, passion fruit, and grapefruit—as well as the premium gin Knut Hansen.
Wirtschaftsforum: And what is the current corporate structure?
Dirk Hasenbein: The company Schwarze und Schlichte is owned by the Schwarze family in its 13th generation. The sole shareholders are five siblings from the family. The operational management of the company is led by Managing Director Katharina Schwarze and myself. In addition to our headquarters in Oelde, there are additional production sites in Rinteln near Bad Oeynhausen and for the gin Knut Hansen in Hamburg. We employ 140 employees, who generate an annual turnover of 140 million EUR. While the spirits market in general shows no growth, we have managed to increase by an average of about 12.5% over the past five years, making us the second-best performing German spirits company for the third time in a row.
Wirtschaftsforum: Impressive. Who are your customers and what does your distribution look like?
Dirk Hasenbein: Among end consumers, it's primarily the age group between 21 and 40 years old that is open to new things. We supply all major retail chains such as Edeka, REWE, Kaufland, Netto, Penny, LIDL, and ALDI. A team of 15 employees takes care of our customers from the gastronomy sector, closely observing trends in the scene and clubs. We have our own online shop, but we also serve the beverage wholesale and Flaschenpost. 30 field representatives are responsible for the trade sector, plus we have four Key Account Managers.
Wirtschaftsforum: What are you doing in terms of marketing?
Dirk Hasenbein: Our marketing team consists of 15 employees. The brands Three Sixty and Déjà-Vu have a strong media presence, through both TV and streaming as well as social media like Instagram. In addition, we engage in PoS activations including XXL placements and on-pack promotions, as well as activations in on-trade. We aim to create experiences at the point of sale. We also focus on search engine optimization and are represented with our own stands at industry fairs such as Pro Wein in Düsseldorf and Berlin's BCB.
Wirtschaftsforum: Is digitalization a topic for you?
Dirk Hasenbein: Digitalization accompanies us along the entire value chain, starting from production to distribution. We have a CRM system: visit reports, tour planning, target setting, and target achievement – all digital. In our gastronomy sector, we work with AI: it scours the entire internet for potential customers relevant to us.
Wirtschaftsforum: And what about sustainability?
Dirk Hasenbein: We focus on ecological packaging and reduced bottle weight. Our logistics partner Dachser also has very high standards in terms of sustainability.
Wirtschaftsforum: What do you want to achieve in the coming years?
Dirk Hasenbein: We want to develop our vodka Three Sixty into an international brand: first in Europe, then on the world market. We also plan to gain further market share in Germany by introducing new variants and advancing the can business. Another issue for us is collaboration with international brand owners.