Beer is becoming more expensive: breweries want to raise prices

A number of major beer manufacturers are raising prices. According to an analysis by the beverage market specialist magazine “Inside”, six of the ten most drunk beer brands in Germany are currently or will be affected by price increases from major breweries in the coming months.

In addition to several large brewers, many small breweries also increased their prices. However, it remains to be seen to what extent the breweries’ customers will accept price increases and pass them on to consumers.

Given the large overcapacity in the German brewing industry, retailers have an easy time buying beer at the best possible conditions, said “Inside” editor Niklas Other of the German Press Agency. In addition, retailers often offer the most popular type of beer, Pilsner, at promotional prices that are well below standard prices. Consumers would still be able to buy beer in stores at prices similar to decades ago.

Not only retailers, but also restaurants are faced with price increases for beer in many cases. “Beer sales are actually stronger than ever under pressure,” emphasized Other. In the catering industry in particular, people are drinking less beer and there is apparently not as much emphasis on socializing at the moment. “There’s also demographics: older people drink less.” The move away from alcohol is hitting other product categories such as spirits or wine even harder.

Non-alcoholic drinks are also currently becoming more expensive. Other points to the market leader Coca-Cola, which increased prices on September 1st. According to the group, the average price increases for all products and packages are in the low single-digit percentage range for customers in retail and out-of-home markets. According to “Inside”, many other brand manufacturers have also passed on their cost increases.

When it comes to non-alcoholic drinks, retailers’ own brands played a larger role. The food trade has already implemented significant price increases here in recent years. “With absurd consequences: In some cases, branded items in the promotion are cheaper than the own brands at Aldi, Lidl & Co.”