The market leader in beer sales in Luxembourg, the Brasserie Nationale in Bascharage known for its Bofferding and Battin brands, has announced that it is developing a new market, in Colombia in South America.

The Colobmian beer market is 100 times larger than that of Luxembourg and has been made accessible thanks to the free trade agreements signed between the EU and Colombia which greatly facilitate trade with that country.

The free trade agreement between the EU, Colombia and Peru came into force in 2013. The aim is to give European companies access to Colombian and Peruvian markets, by removing many barriers, the elimination of tariffs on all industrial products, increased access to agricultural markets, improved access to public markets and public services, and improving the general environment for investors. The agreement focuses on strengthening and promoting bilateral economic relations.

In Luxembourg, the Brasserie Nationale recorded 2015 sales of 158,000 hectolitres of Bofferding and Battin beers; as the domestic market is now mature, and its turnover fell slightly to €10.7 million against €10.8 million in 2014, it is focusing on exports.

While exports are mainly focuson on neighbouring markets in France and Belgium, the company is developing distribution networks near the borders which is now doing very well indeed ever since Bofferding has started to be marketed in Brussels and Nancy. "I prefer to take 10% of a market of 5.5 million hectoliters as in France and 4 million in Belgium, than remain only in Luxembourg where we have 60% market share (with Bofferding and other beer brands marketed by the brewer)," said Frederick Radiguès, CEO ofBrasserie Nationale, during the presentation of the 2015 results in February. Seizing business opportunities, the Brasserie Nationale is also active on more distant markets such as China, the US and Colombia. Overall, the company's exports now amount to 34,000 hectolitres annually.

"Our presence in the Colombian market is still symbolic. That's about 20,000 litres of beer sold per year. But Colombia is a promising market, while the European market is stagnating. This market, which has 48 million inhabitants, or 100 times more than Luxembourg, is dominated by a single brand, a domestic beer. Consumers are eager to discover others, including Bofferding", said the CEO. The objective of the Brasserie Nationale, today, is that there will be significantly increase sales in the coming months. "Everything is easy and very flexible thanks to free trade agreements. I can deal with all requirements by myself, without having to call on experts or to negotiate with middlemen whenever we send a container in Colombia. We export our beer, and our partner in Colombia then handles the distribution. We save time and money allowing us to market our beers at competitive prices for local customers "said Fabien Stanczyk, Director Logistics and Export at Brasserie Nationale which, given its international growth, plans to hire two new employees. The brewery currently employs 267 people.

The Grand Duchy's Chamber of Commerce stated that Luxembourg's exports of goods to Colombia showed a value of almost €4 million in 2012. In 2015, they approached €6.2 million.