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The situation is dire.
"There have been no slumps of this dimension in the German brewing industry since the end of the Second World War," reports Holger Eichele, General Manager of the German Brewers' Association (DBB).
While the sales figures in the Corona year 2020 were around 87 million hectoliters a full 5.5 percent below those of the previous year and thus at a historically low value, the crash in 2021 even accelerated again, very clearly even.
In January, for example, there was a drop in sales of 27 percent according to the Federal Statistical Office, and in February it was almost 20 percent.
The industry has long been sending violent alarm signals.
According to a DBB survey from the spring, 85 percent of the companies use short-time work, at the same time every third brewery has laid off staff, and almost 80 percent of the companies had to postpone planned investments or even cancel them entirely.
Before the end
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Regardless of such emergency measures, one in four beer manufacturers already sees their existence in jeopardy, according to the survey, which, according to the association, is not representative, but nonetheless represents the range of the industry with its recent around 1500 suppliers. "The situation of the companies is becoming more and more desperate," reports Eichele. “Many brewers just don't know what to do next. There are family businesses that are run in the sixth or seventh generation, have survived world wars and economic crises - and are now on the brink of coronavirus. "
The reason for the severe crisis is the standstill in the hospitality industry as well as extensive festivities, celebrations, concerts and events.
"After a number of months of permanent lockdown, the catering business and parts of exports collapsed completely," reports Eichele.
And a recovery of the market is not in sight.
On the contrary: there is still no perspective.
"The losses in sales in the industry now add up to historic proportions." In any case, the Brewers' Association reports an average of around a third less income in the first quarter of 2021. In some businesses that are particularly dependent on catering, the slump is even up to 85 percent.
Brand beers benefit
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There are increases in beer sales in supermarkets and discounters.
The big brand beers, which are listed in practically every supermarket nationwide, benefit from this.
But even for Krombacher, Veltins, Bitburger, Warsteiner, Beck's and Co., the plus in the comparatively low-margin bottled beer business is at best a drop in the ocean.
In any case, the losses in the draft beer segment cannot compensate for the growth in the food trade - not in terms of sales, and certainly not in terms of turnover.
Especially since a fierce price competition has broken out in retail: Branded beer is often available for less than ten euros in classic crates with 20 half-liter bottles.
Because consumers want to go to as few shops as possible when shopping, experts speak of so-called one-stop shopping.
And beer is seen as an important lure in the battle for customers in order to lure consumers into the shops.
Decline for years
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When and how the market will recover from free fall remains unclear.
"Even the usual loss of sales hits the industry hard," says Guido Mockel, management spokesman for the Radeberger Group.
Beer sales have been falling for a number of years due to demographic change and changed consumer habits.
“The year 2020 was now a time machine that drastically increased the existing pressure,” Mockel describes. The manager predicts that it will take a long breath, a lot of patience and a lot of strength for the industry to recover from this slump. "If this can be done completely at all."