Germany: Brewers warn of mass extinction of breweries

Not only in Germany, many breweries are currently fearing for their existence. In one of the most serious crises in the brewing industry, the German brewers have therefore formulated a call for help to politicians.

In an open appeal, the German Brewers' Association and its six regional associations are calling for urgently needed energy and economic policy decisions to avert further damage to the more than 1,500 German breweries represented by the associations, most of which are family-run, medium-sized traditional businesses.

The German brewers warn that it is already "5 to 12" and point out that the costs for electricity and gas are exploding, and as a result the prices for many other goods are also rising to hitherto unknown heights. In addition, supply chains are disrupted and CO 2 is hardly available. (inside.beer, 18.9.2022)

“The procurement costs for gas and electricity are now up to 1,000% higher than at the same time last year - a tenfold increase in energy costs that is not only unbearable for companies in the brewing industry!,” the brewers complain.

For malt, glass, crown corks, and packaging materials such as foils, cans, and cardboard containers the current inflation rate for breweries is around 80%. Pallets have increased in price by 150 %, etc..”, they add.

At the same time, the brewers' trade associations complain that politicians are constantly passing new and expensive aid packages that the brewers see as only having questionable effectiveness. “In this situation, the vague promise of ‘aid packages’, the scope of which no one knows and no one knows when funds will flow, does not help,” the statement reads.

The German Brewers also state that it is irresponsible that the government decides on energy policy measures such as the so-called "gas procurement levy", which makes energy even more expensive instead of cheaper.

That's why they're demanding

1. a cap on gas and electricity prices,

2. the ideology-free use of all available energy sources to generate electricity,

3. the reduction / suspension of all taxes, duties and surcharges on electricity and gas as well

4. the suspension/correction of the "merit order regulation" in order to eliminate its influence on the electricity price.

Under the current conditions, the German Brewers' Association and its six state associations see the existence of many centuries-old traditional breweries at risk. With their joint appeal, they also want to make a contribution to sensitizing politicians to the seriousness of the situation, motivating them to act quickly and effectively and thus preserving companies and jobs in their traditional industry.

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