Florian Schörghuber: Paulaner owner about billion-dollar bet and Oktoberfest success

Munich. The voice is a little hoarse when Florian Schörghuber receives the Handelsblatt for an interview. That's no wonder: As the owner of the Paulaner brewery, the 31-year-old has spent many evenings at the Munich Oktoberfest over the past two weeks.

“The Oktoberfest accounts for less than 0.5 percent of our sales, but 50 percent of our brand,” says the head of the Munich Schörghuber Group. This year the Oktoberfest was a huge success: 6.7 million masses were sold in warm, sunny weather, as the festival management announced on Sunday.

However, according to Schörghuber, Paulaner is currently growing mainly with its mixed cola drink Spezi. His family business is widespread, and the business economist is taking the biggest risk in a completely different place: in the renovation of the Arabellahaus in Munich. Given rising interest rates and construction costs, the project could become a multi-billion dollar undertaking. Others would be extremely nervous because of this, Schörghuber speaks of being “maximally concentrated”.

Mr. Schörghuber, is Oktoberfest the last place that a brewery owner would really enjoy?

I wouldn't go that far. But it's nice to see how well things are going this year. There is a lot of drinking at the Oktoberfest and in the beer gardens. Of course that also depends on the weather.

How can you explain the fact that hundreds of thousands of people in Munich drink liters of beer every day - even though overall alcohol consumption is falling significantly?

People long for real, analog life. And they feel like switching off. Young people today may not drink as much as they used to. But they want to spend time in the beer tent, sing, party. This is not a Munich phenomenon. With our Fürstenberg brewery we traditionally attend the folk festival in Stuttgart, the Wasen. It's comparable there. These are just very important events for people. Tomorrow they might be back at their running community meeting.

Across Germany, one brewery after another is closing. Can the business still be saved?

Sure, the usual after-work beer is no longer available. At the weekend, however, the willingness to have a drink is still there. However, many people no longer always choose the traditional pilsner, but rather the light beer and more often the wheat beer. Then you drink something special.

In any case, beer consumption in Germany has been falling continuously for many years.

That's right, this structural change has been observed for 30 years. We reacted early and also relied on non-alcoholic beers and drinks. We benefit from this today.

How do you feel about it? Do you only drink alcohol-free?

I'm traditional. I drink water and beer.

Florian Schörghuber, 31, is the third child of Alexandra and Stefan Schörghuber. The business economist has been head of the family-owned Schörghuber Group for two years. Previously, he was co-CEO with a non-family manager for two years. Father Stefan Schörghuber died in 2008 at the age of just 48.

The Schörghuber Group belongs to Alexandra Schörghuber and her children. The family business consists of several areas: beverages (Paulaner, Fürstenberg, Kulmbacher, Hoepfner), real estate (Bavarian Hausbau), hotels (Arabella Hospitality) and fish farming (Productos del Mar Ventisqueros).

Its largest brewery, Paulaner, is bucking the industry-wide downward trend.

That's right, we are in the fortunate situation that we are one of the few brewing groups that are growing not only in Germany, but also in Europe and worldwide. We have increased sales by 40 percent since 2022 - precisely because we successfully transformed a classic brewery group into a beverage provider. This year we are also making double-digit growth.

So you're sticking with the beer business?

Beer and drinks are part of our DNA. I'm just thrilled: I love this business. You come into contact with people. You have to be more creative, but you can do business successfully. And we do that. That's why Paulaner is part of the group and will remain part of the group.

Paulaner is also growing, but less with beer than with the cola mixed drink Spezi. What is behind the success?

Paulaner Spezi also creates the sense of community that I just spoke about. The brand stands for joy of life, openness, customs, it is authentic. We are growing by 20 percent with Spezi this year. Our market share is 50 percent. Every third household in Germany now drinks a Paulaner product.

Within six months of launching, we rose to second place in the German can market with our Paulaner Cola. This is the most successful beverage innovation we have ever brought to market.

Want to buy more breweries?

When we look at breweries in Germany, the point is that we need additional bottling capacity. We can't produce Paulaner Spezi entirely in Munich and then drive it around the country. But I assure you: Our Munich beer will of course continue to be produced in Munich.

In China, together with Tsingtao, we brew a beer specially developed for the People's Republic. China is our fastest growing market with an increase of 24 percent last year. In 2026 we will sell more than half a million hectoliters there.

You are also relying on your hometown of Munich in another area: with the spectacular renovation of the legendary Arabellahaus. Interest rates are rising, as are construction costs. Doesn't that make you uneasy?

We are talking about one of the largest single construction projects in Munich, and probably in all of Germany. I admit: we are maximally concentrated.

We will start the renovation in 2030 and want to finish it in 2034. We will finance the project heavily from our own resources.

How much will it all cost?

I can't give you a number yet. But we are probably getting very close to the big one. You mean a billion euros. That's pretty brave.

Clear. Paulaner is an incredible growth story. But real estate is still our largest and therefore most important business area in terms of capital allocation. So of course I'm worried about the high construction costs and the rise in interest rates at the moment.

As one of the few project developers, you have just started building apartments in Munich on a large scale. We are building 165 apartments in the Feldmoching district of Munich. We have been marketing the apartments since the beginning of the year and have already sold around 40 percent.

What is slowing down housing construction in Germany the most?

The main problem is the enormous regulation and the long approval procedures. We often talk about a project duration of eight to ten years. This is why many people end up failing. Our advantage is that our properties are generally equity-financed.

And eat fish? Her seafood company Ventisqueros in Chile is a completely different business. Why are you continuing this?

It's the exotic one in our portfolio, but the market is growing. However, the business is volatile. El Niño and other marine biology challenges are having an impact. When it gets warmer, the fish eat less. Then we have less volume to sell. We have good and bad years. But: Even the bad years in Chile are now profitable. In good years we achieve an operating return of 16 to 18 percent.

How would you describe your role? Would it work without you?

Operationally, there are 6,700 pairs of shoulders who make sure everything runs in the right direction every day. But it's not just me, my mother and my sisters are also present in the group's companies. We see this as a responsibility. A responsibility that is great fun.