German beer sales tank in April
Germany | Because of covid-19 and the lockdown, Bavarian brewers have seen their turnover nearly halved so far. While domestic beer sales declined only 1.5 percent in the first quarter 2020 over the same period last year, April would prove a cruel month.
German beer sales were down 17 percent compared to the same month last year. That is a loss of 1.5 million hl beer, not least since beer exports have almost come to a standstill. Shipments to other EU countries registered a drop of 34 percent. For the January to April period, sales losses have run up to 2.2 million hl over the same period last year.
Percentage-wise, Bavarian brewers were worse affected. Their volume sales tumbled 19 percent or 400,000 hl in April. Not enough, the cancellation of all festivals until end of August, will cost them almost one million hl beer in sales.
Bavaria has about 650 breweries (Germany has 1,550), which sold 24 million hl beer in 2019.
Aggressive discounting
During lockdown, super promo offers in the off-premise became the rule of the day. Unlike in other markets, where retailers dispensed with special offers to make the most of consumers stockpiling, German retailers outdid themselves with cheap beer offers. You could find three crates of AB-InBev-owned Hasseröder for EUR 22 (that is for 30 litres beer) or two crates of Warsteiner (20 litres) for EUR 19.98 (USD 22.20).
The Bavarian government lifted lockdown rules for beer gardens and restaurants’ outdoor areas on 18 May. Indoor dining was permitted as of 25 May. However, patrons and staff need to wear face masks and only members of two households are allowed to share a table. Additionally, patrons need to leave their contact details with staff for contact tracing. Opening hours were extended to 10 pm on 2 June, from 8 pm previously. Clubs and bars continue to be shut.
Publicans and restaurateurs fear that their turnover will decline between 40 percent and 50 percent due to social distancing rules, and patrons’ general reluctance to visit hospitality venues.
