The decline of the traditional German brewing industry shows no signs of slowing down. Recently, several breweries have filed for bankruptcy or closed permanently, resulting in the loss of centuries-old brewing traditions.
The latest victims are the Gambrinus Brewery in Weiden, Upper Palatinate, and the Gesellschaftsbrauerei Viechtach, about 100 km southeast. Both are located in the Bavarian border region with the Czech Republic, an area often described as structurally weak.
The nearly 100-year-old Gambrinus Brewery filed for insolvency on Friday at the Weiden District Court due to unpaid bills and outstanding wages. The brewery's decline is attributed to rising costs, pandemic-related sales losses, and internal issues, with current production at around 15,000 hl, half its peak output.
On Thursday, it was announced that the insolvent Gesellschaftsbrauerei Viechtach would close permanently after nearly 500 years, ceasing production. Despite intensive negotiations, no investors were willing to continue operations. Remaining employees have been let go, and the Viechtacher brand will continue to be produced at the nearby Hofmark Brewery in Loifling, located in the Cham district of the Upper Palatinate.
Last month, the 672-year-old Karmeliter-Bräu from Salz near Bad Neustadt an der Saale (about 75 km northeast of Würzburg) permanently closed its doors. The brand and distribution rights were acquired by Oettinger Brewery, one of Germany's largest brewery groups, mainly active in the entry-level segment (inside.beer, 10.6.2024). It is speculated that the brand, named after a monastic order, will be used to establish the group in the higher-priced segment, similar to other well-known brands like Trappist, Augustiner, Paulaner, Franziskaner, Benediktiner, and Kapuziner.
In addition to various external and internal factors, the wave of brewery closures is also due to declining beer consumption in Germany. Recent figures show a significant drop in sales in June 2024 compared to June 2023, with a total decrease of 11.2% or nearly 1 million hl. The Federal Statistical Office reported that beer sales in June 2024, at 7.77 million hl, were the lowest for June since the Beer Tax Act was revised in 1993. Despite a promising start, beer sales in Germany from January to June 2024 are down 0.6% or 250,000 hl. The industry had hoped that the European Football Championship in their home country would provide a much-needed boost after years of decline.
Since 2018, the German brewing industry has lost over 10 million hectoliters. December 2023 showed little reason for optimism, with domestic sales decreasing by 6.9% and exports by 9.2%. (inside.beer, 2.2.2024)
