The price of brewing malt and carbon dioxide has shot up by 90 percent. Beer lovers will soon have to shell out significantly more for the beer. The Brewers' Association sees a number of companies at risk.
The times when Germans drank more than 145 liters of beer per capita a year are almost 40 years ago. Nevertheless, after years of consolidation, the brewing industry is quite satisfied with an average per capita consumption of almost 92 liters last year. The annual turnover for the barley juice was around 7.6 billion euros. But it remains to be seen whether the Germans will continue to drink beer to the same extent.
Because at most of the 1,500 German breweries, beer drinkers can expect a price increase of between six and nine percent. After all, according to the German Brewers' Association, the breweries are suffering from enormous cost pressure after the Corona crisis years. The costs for brewing malt and carbon dioxide alone have increased by 90 percent.
Get in quick before the Maß becomes unaffordable!
According to the Federal Statistical Office, German breweries sold around 8.8 billion liters of beer last year. This corresponds to an increase of 2.7 percent compared to the crisis year 2021, but the bottom line is that domestic beer sales “at minus five percent are still well below the level of the pre-crisis period,” summarizes the general manager of the German Brewers' Association, Holger acorn. More than 40 breweries disappeared from the market as a result of the losses caused by Corona. “And we fear that number will increase,” says Eichele. “Small and medium-sized businesses in particular are at risk from the high costs that have arisen not only from the Corona crisis, but also now from the energy crisis.”
1000 euros for a ton of malt
< p>There are still around 1,500 breweries in Germany, but in view of the massive increase in costs, they are facing an extremely difficult business year. “In the last year, brewing malt in particular has become more expensive, up 90 percent. With new glass, i.e. returnable bottles, it was 70 percent. Carbon dioxide has become 90 percent more expensive, crown caps by 120 percent, labels by 30 percent,” calculates Eichele . As a result of this avalanche of costs, the Veltins private brewery, for example, is also increasing its prices by six percent.
And that despite the fact that around 3.4 million hectoliters of beer from the Sauerland flowed out of bottles and taps. This corresponds to a liquid increase of 8.4 percent. In terms of sales, Veltins increased by 15.4 percent to 419 million euros. But that doesn't change the “immensely increased costs that we have to absorb,” emphasizes brewery spokesman Ulrich Biene, citing a few examples. “Before the crisis, a ton of brewing malt cost around 300 euros, currently the price is over 700 euros.”
Since one calculates with expected production quantities, one was able to achieve a certain price stability through corresponding supply contracts. On the spot market, adds Biene, however, “sometimes prices of over 1000 euros per ton were called”.
Beer crates have also become more expensive, by 40 percent. Instead of around five euros, breweries now have to pay up to eight euros for it. The price of beer kegs also rose, even by 60 percent. And the hops, which are indispensable for beer, account for a good 35 percent more. With an increase of 120 percent, the price of crown caps has exploded.
Hopfengarten in the Hallertau in Freistaat Bavaria – the largest contiguous hop-growing region in the world is located there.
Not to forget the production costs for electricity and gas. The German Brewers' Association estimates their increase at a whopping 750 percent. “We're dealing with problems,” says Veltins spokesman Biene, “the brewing industry didn't know about them until then.” In addition to the sharp rise in prices for raw materials and preliminary products, inflation is another cost-driving factor. For the long-established private brewery Fiege in Bochum, whose annual output is up to 130,000 hectoliters, there is no alternative to a price increase. For co-owner Carla Fiege, “unfortunately, a proportionate transfer of the blatant cost explosion to the market is unavoidable in order to be able to react to the current market situation.”
Further price increases cannot be ruled out
Against this background, mag It irritates consumers that large retail groups themselves offer branded beers at extremely low prices. According to data from the Gesellschaft für Verbraucherforschung (GfK), a crate of 20 half-litre bottles on offer cost an average of around EUR 9.90 last November, while the normal price for these containers was around EUR 13.40.
In the words of the general manager of the Brauer-Bund, “a ruinous price war is taking place on the backs of the breweries. Some of the beer is being sold off at knockdown prices. We oppose this, but unfortunately we have little influence on how the retail groups behave. ” The private brewery Fiege, for example, has always rejected requests from retail groups to take part in such price campaigns, as they do not want to be sold below price and thus below value.
However, most breweries say they have little choice but to raise beer prices. Just like the Bitburger brewing group, which also owns the König Pilsener, Licher and Köstritzer brands. Other larger and medium-sized breweries have also announced price increases of between six and nine percent.
Transparency is everything: that can't possibly be a Maß – a liter of beer….
After all, the increased costs would have to be passed on to the prices sooner or later, states Holger Eichele. He leaves open whether the price increases announced for 2023 “will remain the last price increases in the near future.”
Ulrich Biene von Veltins admits that it is hardly conceivable to pass on all the additional costs to the consumer in full for an “emotional product like beer”. In this respect, there is no way around reducing income in the industry “and making savings in other areas with precise budget planning.” After all, no brewery wants to lose customers. But it remains to be seen whether sworn beer drinkers will still be loyal to their main brand, which has become more expensive.
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Bavaria – cradle of the Purity Law
Most of the breweries in Germany are located in Bavaria – around 650 at the moment – and the largest growing area for hops is in this federal state. Hops are considered the spice of beer. No wonder, then, that the Purity Law was passed here in 1516. It stipulates that the Germans' favorite drink may only contain four ingredients: water, malt, hops and yeast.
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Craft beer – modern brewing
In addition to the traditional breweries, there are more and more young brewers who are keen to experiment, such as Georg Schmidt with his “BrauStil” microbrewery in Frankfurt am Main (photo). They produce new, aroma-intensive varieties in small quantities, often with organic ingredients and a strong regional connection. The so-called craft beer scene is also booming in Hamburg and Berlin.
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Fantastic variety – spoiled for choice
Fact is: Germany is a beer country. With just four ingredients, German breweries have managed to create more than 5500 beer brands. And the number keeps growing: at least one new beer comes onto the market every week. And it's not just about class, it's also about quantity: According to the BarthHaas report, Germany is the fifth largest beer brewing nation in the world. China is number one.
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Beer gardens – enjoy together
In Germany, many people drink their beer together. For example in the beer garden. Beer gardens are more popular than ever in the corona pandemic – thanks to the fresh air and possible distance. They originated in Bavaria at the beginning of the 19th century. At that time, the brewers served the beer directly from their refrigerated cellars on the banks of the Isar. The guests sat at simple tables and benches.
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Keckneipe – Temple of German beer culture
Here you can also enjoy indoors: Berlin corner pubs like the “Willi Mangler” in the Schöneberg district have a cult following today. The mixture of stuffy, stale air, down-to-earth home cooking and regular clientele makes up the very special charm of these institutions. Tourists seldom come here, residents of the neighborhood drink their after-work beer here: freshly tapped and unbeatably cheap.
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Trinkhallen – never-ending springs
What the drinking hall is to the Ruhr area, the Büdchen is to the people of Mainz and the Späti to the people of Berlin: sales outlets where, in addition to newspapers, tobacco and sweets, beer is certainly also available. They were created more than 150 years ago to sell water. Today they serve as an extended fridge for the big-city beer drinker, because the next Späti is never far away and almost always open.
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football and beer – a symbiosis
Beer puts football fans in a party mood or consoles them when the team is defeated. Actually. But Corona has temporarily changed that too: if audiences were allowed in stadiums at all, there was usually a strict ban on alcohol. Beer-happy fan chants were therefore heard less often.
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Public festivals – don't go without
Schlager, brass band music and fairground stalls – ingredients for a typical German folk festival. For many difficult to get through without beer. But then Corona came and the folk festivals paused. The largest German folk festival will take place again in 2022, as the mayor of Munich explained. The “Wiesn” there attracted around six million visitors in the years before the enforced break.
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beer – it's always possible
Whether it's a wedding, the opening of an exhibition or just hanging out in the park – in Germany, beer is suitable for almost every occasion and can also be consumed in public. For a long time it was considered a drink for men, but it is now also the most popular alcoholic drink among women aged 19 to 24.
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Beer brewing seminars – how it's done
Anyone who is enthusiastic about beer beyond drinking will find more than 30 beer museums, offers for beer hikes and beer brewing seminars in Germany. Here you can create your own beer. Participants also get to know beer types and their history, learn more about German brewing tradition and of course the Purity Law is explained.
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Every beer has its own glass – and cheers!
Not all beer glasses are the same. If you order beer in Munich, you get “a beer”, i.e. a glass mug that today holds exactly one liter. In Cologne you have to drink a few “Kölsch” to get the same amount. There is usually half a liter of Hefeweizen – in the photo the glass on the far left is filled with a dark wheat beer. But it doesn't matter whether it's small or large, beer only tastes good chilled.