€9.99 per crate of “premium beer” has become a rarity in retail. According to an analysis, the promotional prices are increasing. In the first four months of 2023, the promotional price averaged EUR 11.80 per box. And the base price?
Beer drinkers have to get used to new retail prices. This applies not only to the permanent offers, but also to the special offers, which consumers often access several times at the same time. After the price increases of numerous breweries, beer drinkers can hardly find special prices of 9.99 euros per crate.
Promotional prices for beer and beer-based drinks have risen slightly for the second year in a row, data from market research firm NielsenIQ shows. Accordingly, the promotional prices in the first four months of 2023 averaged 1.18 euros per liter. Converted to a large crate with 20 bottles of 0.5 liters each, that’s 11.80 euros. In 2022, the average promotional price was 11.50 per large box. In 2021 and 2020 it was still 11.10 euros per beer crate.
“The promotional price of 9.99 euros per box is gradually disappearing,” said market researcher Marcus Strobl of the German Press Agency. According to him, consumers have been spoiled for decades with such regular promotional prices for so-called premium beer. Only coffee is sold in campaigns to an even greater extent than Pils.
Bonuses and sweepstakes
Promotional prices, graduated prices for larger purchase quantities, extras and sweepstakes play a role, especially with large Pilsner brands, which are usually also advertised with TV commercials. For a long time now, on average, almost two-thirds of retail sales have come from promotions and only a good third of sales from the base price.
Price campaigns can also be observed in retail for Hellbier, which is now the second most popular type of beer in Germany after Pils. “The market does not only consist of national pilsner brands, which are actually no longer premium in the overall context of beer prices because wheat beers and light beers cost significantly more,” explains Strobl.
According to NielsenIQ, the base prices for beer and mixed beer drinks have been changing for the third year in a row: the price per liter rose by an average of 5 cents in 2021 and by 6 cents in 2022. In the first four months of 2023 it was 1.61 per liter – 7 cents above the 2022 average. Converted to the large box, that is plus 70 cents to now 16.10 euros.
Trend towards non-alcoholic
Strobl emphasizes that these are not price jumps and that the price of other products has increased even more. In addition, there is no “hype” when it comes to beer in the lowest price range. However, consumers no longer bought quite as much beer. It’s not just about saving in the face of inflation. There are also effects such as the aging of society and the trend towards non-alcoholic beverages.
A number of breweries have increased their sales prices to retailers and restaurants. These include large breweries, which raised prices last year and this year as well. The companies reported massive cost increases, and not just for energy. The German Brewers’ Association recently complained with a view to the trade that, from the point of view of the industry, urgently needed price increases could only be partially implemented.
However, breweries like Veltins also have consumer restraint in mind. “Due to the enormous cost increases, we were forced for the first time ever to raise the beer price twice within twelve months,” said Veltins Managing Director Marketing and Sales, Volker Kuhl, to the dpa. However, not all cost increases were passed on. “We don’t want to overwhelm consumers,” he emphasized. At Veltins there is no price increase on the agenda for the next few months.
Source: Stern
