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Price war gives cheaper beer

The beer prices are coming tumbling down as Norwegian breweries and stores are preparing to face the German grocery-chain Lidl.

The German grocery-store chain Lidl is expected to enter the Norwegian market soon, and as the chain is well known for dumping its beer prices to gain costumers, the Norwegian breweries and stores have been decreasing their prices to face the competition dead-on.

During the summer and fall the beer prices have fallen unusually low. Both Hansa Borg and Ringnes have presented discount beer brands, and stores have decreased their profit.

The result is beer to between nine or ten Norwegian krone per bottle, around a dollar forty.

According to the Norwegian daily Aftenposten, the price war is most likely a reaction to Lidl, the German low priced grocery-chain which is expected to open stores in Norway soon. Beer is one of the stores biggest carrots. When Lindh opened up in Finland, the store sold its German beer 21 percent cheaper than the cheapest Finish brand.

If the same strategy is used in Norway, the German chain will sell its beer to approximately seven krone per bottle, around a dollar.

We will survive

The Norwegian brewery Ringnes launched their discount beer brand Tuborg in order to compete.

“This is Ringnes’ survival strategy. We have been around for 125 years, and we intend to be here for another 125 years,” said Anne Marit Schiong, head of communications at Ringnes to Aftenposten.

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