Germany: Three leading beer makers announce price hike next year

Three of Germany’s biggest breweries - the Radeberger Group, Krombacher and Veltins - have announced that the price of their beer will increase from next spring. The price hike will affect both the hospitality and retail industries, I am Expat Germany reported on October 23

GetränkeNews, a news provider for the German beverage industry, estimates that the price of Pils, Export and Weizen will rise by about 30 to 50 cents in pubs and bars. The price for a crate of German beer will rise by about a euro.

Radeberger has said it will not raise prices until February, while Krombacher and Veltins want to raise their prices in April. Retail prices might not even be affected until May.

The three breweries have provided justifications for the price hikes. Headquartered in Frankfurt, the Radeberger Group - which is the largest brewery group in Germany - has blamed the rising cost of utilities and raw materials. “In addition to massive losses in turnover and earnings during the 18 months of the pandemic, all companies are now facing further quite massive cost increases for energy, logistics, [and] empties as well as raw materials and supplies,” a company spokesperson said.

Similarly, a spokesperson for Veltins blamed rising energy prices, stating that costs have risen by 150 percent in three years. Krombacher, on the other hand, said that the price adjustment was the first major one for three years.

According to industry experts, these are as good a reason as any for prices to be increased and expect other breweries to follow suit. “Beer will become more expensive across the board in spring 2022.”

Beer prices have dropped since the beginning of the coronavirus pandemic, as retailers slashed prices to try and encourage people to buy more beer during lockdown. At the same time, beer sales are at their lowest since reunification, according to figures from the Federal Statistical Office, with domestic sales down by 5 percent in the first half of 2021 at a low of 3,3 billion litres.

The lockdowns that were implemented to stop the spread of coronavirus saw an almost complete closure of the catering and hospitality trades. This saw breweries lose a significant part of their business, especially since large events were also cancelled. Only the retail industry kept beer sales alive but, even then, only a few of the larger breweries profited.

23 October, 2021