Beer prices in Germany set to rise as brewers announce hikes

Agency Report –

Beer in Germany could soon become more expensive for many people, with price hikes expected on both bottled and draught beer later this year.

Two of the country’s largest breweries are planning increases that are expected to affect both supermarkets and the hospitality sector.

Krombacher and Veltins, among the country’s top-selling beer brands, have announced plans to raise prices in October. The hikes would initially apply to large-scale buyers, but could also be passed on to end customers in shops and bars.

While neither company has disclosed exact figures, industry observers estimate that a standard crate of 20 half-litre bottles could become about €1 ($1.15) more expensive.

Both companies last raised prices in 2023.

Veltins said the increase is necessary to maintain investment in both the retail and catering sectors amid rising costs.

It is not yet clear whether other major breweries will follow suit, or whether supermarket chains will absorb some of the additional costs or pass them on to consumers.

Meanwhile, beer drinkers in Germany have recently seen a surge in promotional offers. According to NielsenIQ market researcher Marcus Strobl, retailers have been competing aggressively with discounts, allowing consumers to buy beer well below the usual shelf price.

Around two-thirds of bottled beer from major pilsner brands is sold at promotional rates, Strobl said, with prices dropping as low as €9.99 per crate. While shelf prices have risen steadily over the past decade, promotional prices have remained largely unchanged – a gap that could widen further with the new increases, he added.

Sourcedpa

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