Bar closures: Belgian brewers suspend production
Belgium | Several brewers are planning to suspend production as long as the measures against the spread of coronavirus continue, De Tijd reported on 18 March 2020.
The reason is the loss of domestic sales, following the mandatory closure of bars and restaurants on 14 March. The initial lockdown is to last until 3 April. This leaves brewers with retail stores as their only sales channel. Yet, many of Belgium’s privately-owned breweries sell the majority of their beer to pubs. Nationwide, the on-premise represents 45 percent of domestic beer sales.
“Our warehouses are overflowing,” Alain De Laet, CEO of Huyghe brewery in Malle, was quoted as saying. Huyghe is best known for its Delirium Tremens beer.
Worries about this year’s turnover
Supermarkets, which remain open, have seen some panic-buying of beer. But this cannot make up for lost on-premise sales, said Edwin Dedoncker, Chief executive of St Feuillien brewery in Le Rœulx. “It’s utopic to think that our total turnover could remain stable this year, never mind grow,” he added.
What is adding to brewers’ woes is the sudden loss of export sales, on which many have grown to depend.
Frank Boon, whose brewery makes lambic beers like geuze and kriek in Lembeek, estimates that his sales will be 20 percent down in March, and 80 percent down in April over the same period last year.
All the beer Boon has brewed already will be bottled. But on 20 March he had to close his brewery for at least two weeks.
Staff lay-offs unavoidable
Almost all breweries, De Tijd newspaper reports, have laid off some staff on temporary unemployment, mostly sales reps, who have no one to visit these days.
The same goes for Omer Vander Ghinste in Kortrijk. Per De Tijd, its CEO Omer Jean Vander Ghinste commented: “The situation is unreal. Our brewery is not closing for the time being, but we are running at a very low level. We are brewing a little to bring our stock up to the right level. This is the biggest crisis since World War II.”
In Bruges, one of Belgium’s tourism hotspots, sales are down 70 percent to 80 percent at the Halve Maan brewery. The Halve Maan is famous for its 3 km long beer pipeline, opened in 2016, which connects the inner city brewery with its out-of-town bottling hall. All members of staff are on temporary unemployment, says owner Xavier Vanneste. “Our visitor centre is closed and our reps have no work. There is very little to do in the brewery itself.”
All the brewers interviewed by De Tijd express little hope that the situation will improve in the near future.
