Brussels Beer Project condemns restrictive contracts hindering brewery's growth

Brussels Beer Project (BBP) has condemned "stranglehold contracts" between bars and big breweries, which it said was holding the brewery back from growing sales.

BBP is investing half a million euros to significantly expand its production capacity in Anderlecht, but the company said that the restrictive contracts in the Brussels hospitality industry were dampening its success in Belgium, while France has the biggest growth potential.

The major investment will go towards adding four new stainless steel XXL tanks, which will be lifted into the building with a crane during a delicate operation that involves removing the roof.

The new installations are expected to increase production capacity by 40% to as much as 35,000 hectolitres per year, or the equivalent of 10 million bottles, according to the founders.

After a brief downturn in business, BBP’s turnover this year has already increased by 10% compared to 4% in 2024. Its flagship Delta IPA is the driving force behind this growth, accounting for 40% of sales, with non-alcoholic beers representing 13% and forecast to grow to 25% in the coming years.

But one area that is not growing is sales in the Belgian hospitality industry, which chief executive Sébastien Morvan said had fallen by 8%.

“More cafes are closing today than are opening,” Morvan said. “It’s a really difficult market now that consumers are spending less, wages are being indexed and taxes remain sky-high.”

Morvan said another major hindrance is that it is very difficult in Brussels for a small brewer to break into the hospitality landscape, describing "stranglehold contracts" whereby large breweries buy premises and link an obligation to purchase drinks to a rental contract.

“In Brussels, the contracts of the big players make it very difficult to find a place in the hospitality industry,” said Morvan.

“We are only a small SME, microscopic compared to the big players in the sector. We cannot compete with them.”

Meanwhile, France, where hospitality contracts are less of a problem, has become the market with the greatest growth potential for BBP, accounting for 15% of sales.

“We already sell more kegs in Lille than in Brussels,” said Morvan.

An ordinance is on the table in the Brussels parliament from Pascal Smet (Vooruit) and Ludivine de Magnanville (MR) that aims to decouple rental agreements from quotas for the purchase of beverages. It could be voted on at the end of November.

Morvan said he supported the ordinance. “Pub owners should be given more freedom,” he said.

“In Brussels, practically all catering establishments currently sell the same thing. Bottled beers create an illusion of diversity, but it is the kegs that account for the real volumes.”

Morvan believes this is also bad for Belgium's image as a beer country. “Imagine if all establishments in Paris only offered four wines. What kind of wine country would France be then?” he added.