91% OF GERMAN BREWERS ARE CONCERNED ABOUT BANKRUPTCY

Covid-19 pandemic became the main reason for the ruin of German brewers. According to the German Brewers' Association (DBB), half of the beer drinks producers will go bankrupt in the nearest future. First of all, ruin threatens those companies that supplied beer for festivals and worked with catering enterprises. The reason for this is the lockdown established by the authorities since November 2020, which has been extended until March 7.

In general, beer sales fell to 70%, say DBB’s representatives. According to the head of the association, Holger Eichele, 20-30% decrease in annual turnover carries the threat of bankruptcy.

Given that the borders of Germany and other EU countries have remained closed for a long time, the supply of German beer abroad was reduced by 13%.

Experts emphasize that the country's brewing industry mainly consists of small and medium-sized businesses, for which revenues depend on regional catering establishments, which are suffering from quarantine measures. According to DBB spokesman Mark-Oliver Hungholz, small-scale keg brewers receive up to 90% of their revenues from local pubs and restaurants. As a result, about 1,100 breweries, including monastic ones, suffer serious losses.

DBB Chairman Eichele notes that 91% of beer producers fear mass bankruptcies, since the main distribution channels are closed. Brewers accuse the authorities of too slow implementation of federal programs, calling for swift measures to save the industry. According to him, 79% of brewers in Germany consider the aid promised by the federal government to be insufficient.

Earlier, German experts noted that another reason for the fall in demand for beer was the isolation regime, which reoriented the behavior of the country's citizens from beer consumption to consumption of wine.

While staying at home (alone or with family), the inhabitants of Germany prefer to consume the products of the wine industry. Moreover, since the spring of 2020, representatives of the German Wine Institute noted the increased demand for wine from supermarkets.