Financial expert warns against continuing brewery operations - beer sales in Germany have fallen dramatically

Financial expert warns against continuing brewery operations - beer sales in Germany have fallen dramatically

According to a report by www.tagesschau.de,

The sales crisis for breweries in Germany continues. In 2023, beer sales fell by around 4.5 percent, which the breweries describe as a very black year. Beer exports are also declining. The reasons for the declining beer sales are varied. In addition to the long-term trend of falling beer consumption in Germany, demographic developments and the trend towards a more health-conscious attitude to life also play a role. In addition, breweries are suffering from ongoing inflation and consumers' more economical spending habits.

Mixed drinks, which account for around 4.8 percent of total beer sales, are also seeing a decline in sales. Despite the lifting of coronavirus pandemic restrictions and the reopening of restaurants and pubs, inflation remains a problem and is causing consumers to save on food and drinks.

Breweries are facing difficult times as many of them have already exhausted their financial reserves. Some companies are debating whether continuing operations is still worthwhile from a financial perspective. The German Brewers' Association estimates that it will be years before breweries can hope for a recovery.

The long-term development of beer sales in Germany shows that breweries have to prepare for ongoing challenges. The trend towards declining beer consumption and the economic factors will continue to play a role in the future and could place further strain on the brewery industry.