Duvel Moortgat: master brewers, marketing and strategic expertise

Introduction: from village brewery to global brand

Duvel Moortgat is one of the world's most iconic breweries, with a history reaching back to 1871. A small family brewery in Breendonk, Belgium, grew into an international beer group with an impressive portfolio including Duvel, Vedett, La Chouffe, Liefmans and many others.

Its growth reflects the quality of its beer and, above all, strategic marketing choices, precise positioning, a bold brand vision and international expansion. This is the story of a Belgian beer brand becoming a global phenomenon.

Origins: the birth of Duvel (1871–1923)

Jan-Leonard Moortgat founded the brewery in 1871, when Belgian beer culture was flourishing. The breakthrough came in 1923 with the launch of Duvel. A local shoemaker coined the name, describing its powerful flavour and high alcohol content as “a real devil”.

📈 Early marketing strategy:

• Word of mouth: Duvel initially relied on its local reputation.

• Authenticity: the emphasis was on Belgian brewing tradition and the beer's distinctive character.

International expansion: a world of Duvel (1970–2020)

From the 1970s, Duvel Moortgat expanded into international markets. This growth resulted from a deliberate expansion strategy.

🌐 Key phases of international growth:

1. Europe (1970–1990):

• Duvel quickly reached the Netherlands, France and the United Kingdom.

• Speciality beer focus: Duvel positioned itself as a premium speciality beer rather than a mass-market offering, appealing to connoisseurs.

2. United States (1990–2010):

• Brewery Ommegang acquisition (2003): a strategic foothold in the US craft beer market.

• Boulevard Brewing Company acquisition (2014): the Kansas City brewery strengthened Duvel's position in the Midwest, where demand for craft beer was growing.

• Firestone Walker Brewing Company acquisition (2015): a significant step on the US West Coast, known for its thriving craft beer culture.

• Duvel targeted the expanding American craft beer scene, presenting Belgian heritage as a sign of authenticity and quality.

3. Asia and Latin America (2010 onwards):

• China and Japan: smart distribution agreements and local importer partnerships helped Duvel become a popular niche product.

• Acquisition of a brewery in Tianjin, China (2022): intended to move part of Vedett White production closer to the Chinese market. Vedett White is popular there because of its familiar taste, with wheat beers among the first beers introduced to China, and its white polar bear mascot.

4. Southern Europe (2015 onwards):

• Birrificio del Ducato acquisition (Italy): strengthened Duvel's Italian position amid growing demand for craft beer.

• In Spain, Duvel has gained popularity through trendy bars and gastronomic festivals combining beer with fine dining. Belgian tourists on the Costas also contribute to its success.

📊 Smart marketing strategies:

• Minimalist design: a simple, recognisable bottle with the iconic red logo. Less really was more.

• The glass as a brand asset: Duvel's distinctive glass became a marketing tool, designed to showcase aroma and foam. See www.duvel.be/artcollection.

• Co-branding and events: collaborations with artists and events once made Vedett a favourite in hipster and festival scenes. Duvel secured a central festival presence through its bold, artistic image.

• Local authenticity, global appeal: each brand retains its character while benefiting from Duvel Moortgat's distribution strength.

• Storytelling: Duvel and La Chouffe excel at stories around their beers, enriching the brand experience.

Portfolio diversification: beyond Duvel

To reduce dependence on one brand, Duvel Moortgat began acquiring breweries and forming partnerships:

• La Chouffe (2006): known for fruity blonde beer and playful gnome marketing. It achieved cult status particularly in France, supported by targeted campaigns and a strong festival presence.

• Vedett: positioned as Duvel's fashionable, rebellious, lower-strength sibling, with playful campaigns and personalised labels. Yet its differentiation in the Low Countries seems to have lost some appeal. Would it be simpler for Vedett in Belgium and the Netherlands to follow its Chinese strategy?

• Liefmans: a smart response to growing demand for fruit beers. Liefmans on the rocks quickly became popular among young adult drinkers moving from soft drinks towards more complex beers.

• 't IJ (Amsterdam): a strategic acquisition to expand further in the Dutch market.

• Birrificio del Ducato (Italy): an Italian craft beer brand fitting Duvel's strategy of responding to local tastes with an artisanal touch.

🚀 Innovation within the Duvel portfolio:

• Duvel On Tap: in 2017, Duvel Moortgat introduced an innovative system allowing its iconic beer to be served on draught. This was a world first: Duvel's complex secondary fermentation and high carbonation had made draught service difficult. After two years of research, the brewery developed a patented system meeting the requirements for draught Duvel to match the bottled version. Yet success remained elusive. The system was complex, expensive and maintenance-intensive. Vested interests have so far prevented a fresh start towards a simpler solution that could boost distribution.

• Duvel 666: aimed at younger adult drinkers, with a softer flavour and refreshing character. It addresses demand for lighter speciality beers accessible to a broader audience. The question is whether it can establish and retain its own place alongside classic Duvel. Traditional Duvel drinkers have doubts. At the time of the original article, it was not available in large or small cans, limiting uptake by light users. Its recently introduced glass uses a standard shape that runs counter to the brand's established iconic design.

• Duvel Barrel Aged: a premium product with a different flavour each year, addressing gifting occasions such as holidays and special events. Barrel ageing offers a new “unique taste experience” annually.

• Duvel Distilled: for loyal enthusiasts willing to pay, Duvel extended its expertise into spirits. This luxury product fits the artisanal spirits trend. The brewery's 150th anniversary brought a special version in a luxury bottle with striking packaging.

• Limited editions: Duvel Tripel Hop used a different hop variety annually to generate curiosity and engagement. Its two flavours, Cashmere and Citra, sell at a slight premium to classic Duvel and became permanent portfolio additions, although establishing them in out-of-home channels still appears challenging.

• Collaborations: partnerships with artists and designers for distinctive bottle designs and special editions.

• Alcohol-free Duvel: no alcohol-free variant was known at the time of the original article.

Duvel Moortgat's future: challenges and strategic opportunities

Like all breweries, Duvel Moortgat faces new challenges in a rapidly changing beer market. After years of relying on Belgian heritage and premium positioning, changing consumer trends, increasing competition and economic uncertainty require strategic reinforcement.

1. Declining beer consumption: the changing drinker

Overall beer consumption is falling in Europe and the United States. Consumers increasingly choose healthier lifestyles, shifting towards low-alcohol and alcohol-free drinks.

🚩 Key challenges:

• Health trends: younger adults drinking less, the rise of “sober curious” behaviour and growth in low- and no-alcohol drinks.

• Competing alternatives: hard seltzers, mocktails, craft soft drinks, other strong beers, craft beers and microbreweries, particularly in France. Also the efforts of businesses such as Diageo, under considerable pressure.

• Fewer pub visits: changing leisure habits reduce traditional hospitality visits.

2. Increasing competition: the battle for attention

The speciality beer market has become considerably more competitive, with Omer, Victoria, Leffe, Hertog Jan and countless craft propositions strengthening their presence. Marketing campaigns and strong positioning have increased their visibility and popularity.

🚩 Key challenges:

• Market saturation: more competition makes it harder to stand out on shelves and win preference.

• Competitors' strong trade marketing: substantial spending on promotions and distribution deals puts pressure on others to match or improve their offers.

• Innovative packaging: gift packs and luxury bottles have become standard, making packaging alone less distinctive.

• Channel expansion: I still see little or far too little Duvel on international airlines, at airports and on cruise ships.

📊 A competitive example:

• Leffe, targeting the mainstream middle in price and taste, launched “Silence is Golden” in 2023. The campaign explores friendship's quiet strength and comfortable silences. Rolled out across several markets, it highlights subtle, wordless communication between friends, using subtitles to convey the message.

• Leffe also introduced the first cooking show on Instagram, an innovative centrepiece of its 360-degree marketing strategy. Collaborations with well-known chefs and influencers strengthened its food-pairing experience. Food pairing is the category entry point the brand has backed with substantial investment for years. In AB InBev's Leffe strategy, it is seen as one of the last enduring CEPs in strong beer. The company also invests heavily in its alcohol-free variant.

3. Digital lag: the online opportunity

Although drinks e-commerce is growing strongly, Duvel Moortgat has not fully benefited. Online sales channels remain limited, and digital marketing sometimes lacks competitors' impact.

🚩 Key challenges:

• Limited online presence: absent or insufficiently visible on relevant platforms.

• Missed direct-to-consumer opportunities: limited emphasis on owned e-commerce, although the brewery invests strongly in online merchandise in Belgium.

• Moderate digital interaction: less active social engagement than brands such as BrewDog, something that could be said of many breweries.

4. International complexity: local markets, local challenges

Duvel Moortgat operates in more than 60 countries, including key growth markets such as China and the United States. Each has its own dynamics and challenges.

🚩 Key challenges:

• China: economic uncertainty, stronger local craft competition, changing tastes and possibly increasing protectionism.

• United States: a shift towards locally brewed beers and intense craft competition.

• Italy and Spain: wine's prominence and the rise of local craft beer.

5. Economic pressure: rising costs and squeezed margins

Rising raw material, energy and logistics costs directly affect profitability. Economic uncertainty also limits consumer spending power, putting pressure on premium brands.

🚩 Key challenges:

• Higher production costs: rising hop, malt and energy prices.

• Limited pricing flexibility: consumers are less willing to pay higher prices.

• Supply-chain risks: disruption from geopolitical tensions and pandemics.

6. Sustainability: more than a trend

Consumers expect brands to take environmental responsibility. This requires a holistic approach beyond environmentally friendly packaging.

🚩 Key challenges:

• Production's environmental impact: high water and energy consumption.

• Transport emissions: distant exports increase the carbon footprint.

• Consumer and retailer expectations: transparency about sustainability efforts.

In a future article, we will explore another Belgian business.

There may also be lessons from Heineken, whose 2024 results arrived on the day this article was originally published.

A brief analysis:

Key drivers of Heineken's 2024 success

1. Strong global growth:

• Revenue growth: net revenue (BEIA) grew organically by 5.0% to €29,964 million, supported by developed and emerging markets.

• Beer volume: organic growth of 1.6%, with strong Heineken® performance, up 8.8%, particularly in Brazil, China, Vietnam and Nigeria.

2. Premiumisation strategy:

• Premium portfolio growth: premium beer volume rose 5.2%, led by Heineken® Silver, up 24.4% in Asia-Pacific, Birra Moretti and Desperados in Western markets.

• Growth market focus: Brazil, Vietnam, India and South Africa were crucial, reflecting a strategy of winning premium segments in emerging economies.

3. Digital transformation:

• eB2B platforms: platforms such as eazle processed €13 billion in trading value, strengthening connections with more than 700,000 active customers.

• AI and data-driven insights: tools such as AIDDA (AI Data-Driven Advisor) optimised sales, predicted customer churn and improved go-to-market efficiency.

4. Sustainability initiatives:

• Environmental impact: Scope 1 and 2 emissions fell 34% from 2022, with renewable electricity use reaching 84%.

• Circular economy: 39% of volume was sold in reusable packaging, and 98% of packaging was designed for recyclability.

5. Innovation in alcohol-free drinks:

• Heineken® 0.0 growth: sales increased 10%, reaching 117 markets, reinforcing leadership in alcohol-free beer.

6. Marketing excellence:

• Increased investment: marketing and selling expenses rose 10.7% to €2,938 million, focusing on campaigns such as “The First Ahhh” and partnerships with F1® and world champion Max Verstappen.

• Global campaigns: creative work such as “Forgotten Beers” and collaborations with Netflix in Brazil increased visibility.

7. Operational efficiency:

• Cost savings: €0.6 billion in gross savings exceeded targets through supply-chain optimisation and procurement efficiency.

• Margin improvement: operating profit (BEIA) grew 8.3%, with a 40-basis-point margin increase despite currency headwinds.

8. Strategic mergers, acquisitions and portfolio optimisation:

• Acquisitions: strengthening key-market positions through deals such as Distell in South Africa and continued premium-brand investment.

• Divestments: withdrawing from less profitable markets, such as Russia and Sri Lanka, to focus on core growth areas.

9. Addressing challenges:

• Currency fluctuations: despite a €1.7 billion negative impact from currency devaluation, particularly in Nigeria and Brazil, strong pricing strategies and premiumisation softened the effects.

• Inflation: countered through price increases averaging 4.1% and efficiency programmes.

10. A brief competitive analysis of Heineken versus AB InBev reveals:

Key differences:

• Premium focus: Heineken's premium portfolio outperformed AB InBev's, driven by Heineken® Silver and Birra Moretti.

• Sustainability leadership: Heineken leads in renewable energy use and carbon-emissions reductions.

• Digital engagement: both excel in eB2B platforms, but Heineken's AI tools offer an advantage through deeper customer insights.

• Strategic sponsorship leadership: international football and Formula 1.

• Strategic innovation leadership: 0.0%, Heineken Silver as a lighter beer, Desperados and more.

  Heineken's 2024 success reflects its focus on premiumisation, sustainability and digital transformation. Addressing economic challenges, applying data-driven marketing and investing in growth markets helped it perform strongly against competitors such as AB InBev.

  Future growth requires maintaining momentum, continuing to innovate and responding flexibly to global market dynamics.