As of: January 18, 2024, 4:50 p.m
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Brewery C. & A. Veltins.
© Bernd Thissen / Veltins/Brauerei C. & A. VELTINS GmbH & Co. KG/obs
At least two large breweries in North Rhine-Westphalia want to keep their prices stable.
But the increased truck toll can also have an impact on retail prices.
Consumers are increasingly turning to special offers.
Meschede/Warstein/Berlin - Given the significant decline in beer consumption in Germany, some large breweries are holding back on further price increases.
After Krombacher, Veltins also stated that price increases were not on the agenda.
“No further price increases for us in '24,” said Veltins boss Michael Huber to the dpa on Thursday.
However, he also pointed out that logistics companies would be burdened with a higher truck toll when transporting drinks, among other things.
According to the market research company NielsenIQ, the picture is mixed for both beer and other beverages.
“There are brewing groups that have already communicated a price increase for 2024, but others are holding back on this,” said market researcher Marcus Strobl to the dpa.
He assumes that prices will continue to rise, but not to the same extent as in 2023. In addition, retailers are selling more beer in price promotions again.
The publisher of the beverage market magazine “Inside” also assumes that many beer manufacturers will hold back on price increases at least in the first half of 2024.
Nevertheless, beer could become more expensive in stores or restaurants because the toll increase at the beginning of December made the transport of drinks more expensive by around 10 to 30 cents per crate, explained editor Niklas Other a few days ago.
On the other hand, retailers are increasingly trying to attract customers with promotional prices, as became apparent at the end of 2023.
“We tried very hard not to follow this activism,” said Veltins boss Huber.
According to records, Veltins has accepted a sales decline of 2.9 percent to 3.26 million hectoliters in 2023.
In the 2023 annual review, Huber also referred to the need to make the energy-intensive brewing operation climate-neutral.
This means that the industry is facing the largest investments of this decade.
It is already foreseeable today that the costly transformation to renewable energies will financially overwhelm many breweries and become a question of existence, explained the Veltins boss.
The family company announced 90 million euros in investments in wind power, photovoltaics and energy storage systems, most of which are to be implemented by 2030.
Four wind turbines are planned in the brewery area in the Hochsauerland district.
This is in addition to the 420 million euro brewery renovation that has just taken place.
The President of the German Brewers Association, Christian Weber, points out in the “Lebensmittel Zeitung” (“LZ”, Friday) that many breweries have already had several years of low profits and reserves have been used up.
“And especially where there is a succession and the continuation of the business involves larger investments, owners think carefully about whether they want to and can continue under these conditions.”
Overall, the costs for a medium-sized brewery are still significantly above pre-pandemic levels.
“And: The majority of it has not yet been able to be passed on to customers.
The breweries absorbed much more than they should have,” explained Weber.
Whether a brewery increases its sales prices to restaurants and retailers is a business decision.
“But what I would like to say is that the price level for beer must rise in the medium and long term.”
According to Veltins, many companies in the industry are nervous.
There are “knocking signals” in the market.
“In the beginning it is usually called cooperation, but then it usually involves some kind of sale,” said Huber.
It's mostly about regional brewers.
Acquisitions are currently not an issue for Veltins.
According to Veltins analysis, the decline in the German beer market has accelerated.
Most recently, 10 million hectoliters were lost in just six years; previously it took ten years for such an amount.
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The Haus-Cramer group around the Warsteiner brewery has slightly increased its sales in Germany against the market trend.
In 2023, domestic growth of more than one percent was achieved, while the German beer market shrank by around four percent, a spokeswoman said on Thursday.
The main brand Warsteiner is gaining market share.
Foreign business grew by 11.7 percent.
Total sales therefore increased by 2.1 percent to 3.6 percent million hectoliters.
Krombacher kept sales almost stable last year in the shrinking German beer market.
The family business from Siegerland sold a good 6 million hectoliters of beer in 2023.
That is 0.4 percent less than 2022, Krombacher announced last week.
“There are currently no plans to increase prices for either beer or non-alcoholic drinks,” said a spokesman.
dpa