BIP Brewery

BIP Brewery, short for Beogradska industrija piva, is a historic Serbian brewing enterprise headquartered in Belgrade. Its institutional history reaches back to 1839, when Czech milling specialist Johan Weinhappl established one of the early breweries associated with the later BIP tradition. The business subsequently absorbed or became connected with several important Belgrade brewing operations, including the Bajloni brewery and the brewery established by industrialist Đorđe Vajfert in the Mostar area of Belgrade. The Vajfert brewery, opened in 1873 and completed as a larger industrial complex by 1880, became the predecessor of the modern BIP facility. It was one of the most prominent breweries in the Kingdom of Serbia and later the Kingdom of Yugoslavia. Vajfert beer received gold medals at the Paris World Fairs of 1889 and 1900. The complex included production buildings, a villa, underground storage galleries, and cellars used for maturing and storing beer. The site also became an important social and architectural landmark in Belgrade. Following the Communist takeover after the Second World War, the brewery was nationalized, repaired, and reorganized. The former Vajfert operation and the Belgrade brewery associated with the Bajloni tradition were merged in 1950 under the name 7 July. On 23 January 1963, the enterprise was reorganized again as Beogradska industrija piva, or BIP, together with the Bezalko company. During the 1960s and 1970s the business was modernized and expanded. Its malting section, opened in 1965, made BIP the only Serbian brewery producing malt at that time. The company reached its strongest position during the 1970s. By the middle of that decade it was producing approximately 1.5 million hectoliters of beer annually and held more than a quarter of the beer market in Yugoslavia. Its facilities were equipped with advanced industrial controls, including a Siemens control board described in contemporary accounts as unusually sophisticated. In addition to beer, BIP produced kvass, carbonated soft drinks, vinegar, and yeast. In 2014, beer represented approximately 80 percent of its output, with kvass, soft drinks, and vinegar accounting for most of the remainder. The dissolution of Yugoslavia and the economic disruptions of the 1990s weakened the company. A major factory fire in 1997 added to its difficulties. Attempts to privatize BIP in the 2000s were unsuccessful or later cancelled. A Swedish-Lithuanian consortium acquired a majority stake in 2007, but the privatization was terminated in 2010 after the authorities alleged that contractual investment, tax, share-purchase, and asset-management obligations had not been met. BIP subsequently entered bankruptcy proceedings in September 2015 and was formally bankrupt in early 2016. A Macedonian investor leased the brewery in 2017 and initially proposed maintaining production while developing a new facility. That lease ended in 2019 after the investor concluded that the existing BIP concept had no viable future. Limited production continued under the bankruptcy administration, while parts of the Belgrade complex deteriorated. Urban plans proposed replacing most of the Mostar site with commercial, hotel, office, and retail development, while preserving Vajfert's Villa and potentially retaining a small brewing operation for tourism. In 2021 the company and associated assets were offered for sale. A consortium of Germany's DL Holding and Serbia's Auto Čačak became the sole bidder and acquired the assets for substantially less than the initial estimated value. The buyers stated that the Mostar complex would be redeveloped as a business park. The transaction was contested by members of the Veljković family and minority shareholders, who questioned the restitution process, valuation, and bankruptcy-related sale. BIP's operational future after the 2021 transaction is unclear; the enterprise has been described as transformed rather than continuing in its former i…

BIP's history is rooted in the development of industrial brewing in Belgrade. The earliest identified predecessor was established in 1839 by Johan Weinhappl, a Czech milling specialist from Sremska Mitrovica. Another early operation was founded by Filip Đorđević in 1850 and later acquired by the Bajloni family in 1880. Known as the Little Brewery, it produced Aleksandar beer using local thermal water and used underground galleries for storage. A separate Great or Princely Brewery was established in 1840 near the modern intersection of Balkanska, Gavrila Principa, and Admirala Geprata streets. It was associated with Princess Ljubica Obrenović and later with the Vajfert family, although the building was demolished in 1935. The most important direct predecessor of the modern BIP facility was Đorđe Vajfert's First Serbian Steam Brewery, established in the Mostar area in 1873. Vajfert completed the larger complex by 1880 after studying brewing near Munich. The site included a brewery, gardens, a villa, and extensive underground beer cellars. Vajfert's brewery became a leading Serbian industrial enterprise. Its beer won gold medals at the Paris World Fairs of 1889 and 1900. Vajfert retained ownership until his death in 1937, after which the business passed to his nephew Fernand Gamberg. The factory suffered damage in both World Wars. After 1945 the brewery was nationalized and reorganized as the 7 July factory. The former Bajloni and Belgrade brewery operations were merged with it in 1950. On 23 January 1963, the enterprise adopted the BIP name through a merger with Bezalko. Modernization followed, including expansion of production and the opening of a malting department in 1965. During the 1970s BIP reached its industrial peak, producing about 1.5 million hectoliters per year and supplying more than one quarter of the Yugoslav beer market. The company also diversified beyond beer into malt, kvass, soft drinks, vinegar, and yeast. The Skadarlija brewery was declared a cultural monument in 1967 and continued operating until 1989. The spring associated with that site was bottled for drinking into the early 2000s. By the late 2000s parts of the inner complex had been abandoned, and proposed redevelopment threatened the historic industrial site. BIP's position deteriorated after the breakup of Yugoslavia. The company was badly affected by the economic conditions of the 1990s and by a major fire in 1997. A public sale attempt in 2004 failed. In 2007 a Swedish-Lithuanian consortium acquired 52 percent of the company, but the Serbian authorities terminated the privatization in 2010, citing unmet investment and financial obligations and disputed handling of company assets. Litigation and claims for compensation followed. The brewery entered bankruptcy proceedings in 2015. In 2017 M6 EDEN SRB leased the operation, with Svetozar Janevski proposing temporary continued production and a possible replacement brewery. The lease was terminated in 2019. At the same time, the Belgrade authorities developed plans to change the land's designated use and redevelop most of the Mostar complex. Structural deterioration, unstable terrain, and the long-uninspected underground galleries added to the site's problems. A 2020 ammonia leak resulted in 18 reported hospitalizations. In 2021 BIP's assets were offered for sale and acquired by DL Holding and Auto Čačak. The purchasers announced a business-park project for the Mostar site. The sale remained controversial because of restitution claims by the Veljković family and objections from minority shareholders. The post-sale status of BIP as a functioning beer producer is uncertain.

1. 2021Assets transferred to new consortium

   DL Holding and Auto Čačak acquired the offered BIP assets and proposed redevelopment of the Mostar complex.

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2. 2015Bankruptcy proceedings begin

   BIP entered bankruptcy proceedings in September.

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3. 1997Major factory fire

   A major fire further damaged a company already weakened by post-Yugoslav economic disruption.

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4. 1970Peak Yugoslav production era

   During the decade BIP reached approximately 1.5 million hectoliters of annual beer production and more than one quarter of the Yugoslav market.

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5. 1965Malting section becomes operational

   BIP opened a malting section, reportedly making it the only Serbian brewery producing malt at the time.

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6. 1963BIP name adopted

   On 23 January, the enterprise merged with Bezalko and became Beogradska industrija piva.

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7. 1950Postwar brewery merger

   The nationalized brewery operations were merged under the name 7 July.

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8. 1900Second Paris gold medal

   Vajfert beer again received a gold medal at the Paris World Fair.

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9. 1889Vajfert beer wins a Paris gold medal

   Vajfert beer received a gold medal at the Paris World Fair.

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10. 1873Vajfert steam brewery opens

    Đorđe Vajfert opened the First Serbian Steam Brewery at the Mostar site, the direct predecessor of the later BIP complex.

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11. 1839Early brewery predecessor established

    Johan Weinhappl established a brewery in Belgrade, forming the earliest documented predecessor associated with BIP's institutional history.

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A historic Belgrade brewing institution whose identity combines Serbian industrial heritage, traditional beer production, and a former mass-market role in the Yugoslav brewing industry.

• BIP beerBeer1963

  The brewery's core product category and the main contributor to output in its later operating period. BIP beer was produced at a large Belgrade industrial complex that served the Serbian and Yugoslav markets. The company was historically associated with mass production rather than a narrowly specialized craft portfolio.

• Vajfert beerBeer

  Beer associated with Đorđe Vajfert's nineteenth-century brewery, the principal predecessor of the modern BIP facility. Vajfert beer won gold medals at the Paris World Fairs of 1889 and 1900, establishing an early reputation for product quality and international recognition.

• Aleksandar beerBeer

  A beer produced by the Bajloni family's Little Brewery, one of the historical operations later connected with Belgrade's brewing industry. It was made using thermal water from a spring beneath or near the brewery site.

• KvassFermented soft drink

  A non-beer fermented beverage included in BIP's diversified product range. In 2014 it represented approximately 10 percent of the company's reported output.

• Soft drinksNon-alcoholic beverages

  Carbonated and other non-alcoholic drinks formed part of BIP's broader beverage portfolio. They represented approximately 5 percent of reported output in 2014.

• Vinegar and yeastFood ingredients

  BIP also produced vinegar and yeast, extending the business beyond beverages and making use of capabilities related to fermentation and food processing.

• 2021Sale of BIP assetsM&A

  The bankrupt enterprise and associated properties were offered for sale amid uncertainty over the viability of continued brewing at the Mostar site.

  What changed. DL Holding and Auto Čačak acquired the assets as the only bidding consortium.

  Aftermath. The buyers announced plans for a business park at Mostar, while restitution claimants and minority shareholders challenged aspects of the transaction.

  Sale price. 2.09 billion Serbian dinars (August 2021)

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• 2015Entry into bankruptcyStrategy

  BIP's performance had deteriorated after the breakup of Yugoslavia, compounded by a 1997 factory fire and failed privatization efforts.

  What changed. The company entered bankruptcy proceedings in September 2015.

  Aftermath. Production continued on a limited basis under bankruptcy administration, while the value of the Belgrade real estate became increasingly central to the company's future.

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• 2007Majority privatization to Swedish-Lithuanian consortiumM&A

  The Serbian authorities sought to privatize the brewery after an earlier sale attempt failed.

  What changed. United Nordic Beverages AB and Alita acquired 52 percent of the company.

  Aftermath. The privatization was terminated in 2010 after the authorities cited unmet investment, tax, share-purchase, and asset-management obligations.

  Purchase price for 52 percent stake. €26.5 million (July 2007)

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• 1963Formation of Beogradska industrija pivaStrategy

  Postwar brewery operations had been reorganized under the 7 July structure.

  What changed. The enterprise merged with Bezalko and adopted the BIP name.

  Aftermath. The new structure supported modernization and expansion during BIP's subsequent growth period.

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• 2021Controversy over the BIP asset saleControversy

  The 2021 sale was disputed by members of the Veljković family, who maintained that restitution claims had not been properly resolved. Minority shareholders also questioned the valuation and alleged that the bankruptcy and sale process disadvantaged the company.

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• 2021BIP assets sold to DL Holding and Auto Čačak consortium

  The consortium became the sole bidder for BIP's offered assets and announced plans to redevelop the Mostar brewery complex as a business park.

  M&A
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• 2020Ammonia leak reported at the brewery

  An ammonia leak reportedly produced a white cloud around the facility and led to 18 people being hospitalized.

  Other
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• 2019Lessee ends BIP lease

  Janevski ended the lease, stating that the existing BIP concept did not have a viable future. A subsequent public search for another lessee did not attract an offer.

  Other
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• 2017M6 EDEN SRB leases the brewery

  A company associated with Macedonian investor Svetozar Janevski leased the brewery and proposed maintaining operations while a new brewery location was considered.

  M&A
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• 2015BIP enters bankruptcy proceedings

  BIP entered bankruptcy proceedings in September 2015 and was formally bankrupt in early 2016.

  Bankruptcy
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1. BIP Brewery