Germany: Beer industry needs regular price increases to survive - Bitburger Brewery Group

Beer drinkers will have to expect more frequent price increases in the future than in the past, according to the Bitburger Brewery Group, Yumda reported on March 10.

"This industry needs regular price increases in order to survive," said Managing Director Technology and Environment Jan Niewodniczanski on March 8 on the occasion of the annual balance sheet. He pointed to massive recent cost increases for brewers in areas ranging from energy and malt to beer bottles, among others. Discussions with the trade about higher prices, however, are difficult, he said.

Before the pandemic and energy crisis, he said, it was only possible to pass on cost increases to consumers over longer periods of time. For example, a crate of beer cost 20 German marks several decades ago, while baked goods and fuel, for example, have become considerably more expensive since then, said Niewodniczanski. The Bitburger Brewery Group had raised prices for some of its brands last year and implemented another price increase this year.

After declines in the pandemic, the Bitburger Brewery Group achieved a sales increase of more than 15 percent to 729 million euros in fiscal 2022 with the relaunch of gastronomy and major events. Revenues rose faster than sales, which increased by almost 11 percent to 5.8 million hectolitres. The group had thus come close to its pre-Corona level. Adjusted for Wernesgrüner Brauerei in Vogtland, Saxony, which was sold to Carlsberg Germany, the figure was 6.09 million hectolitres in 2019, he said.

Double-digit sales growth in 2022 was recorded not only for the flagship Bitburger brand (14 percent), but also for König Pilsener (19 percent), Licher (15 percent) and Köstritzer (12 percent), he said. The greatest sales growth was achieved with the Benediktiner Weißbräu brand (34 percent). In addition to wheat beer, light beer is also offered under the Bavarian brand. It is produced in Ettal in Bavaria and Lich in Hesse. A sales partnership exists between the Bitburger Brewery Group and Benediktiner Weißbräu GmbH.

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