On Tap: Krombacher and Veltins Up the Ante with Beer Price Hikes
Beer manufacturers contemplate enacting price hikes on their products.
Get ready for a splash of reality, beer aficionados! Two heavyweights in the German beer scene, Krombacher and Veltins, are beefing up their prices. But worry not, there's a glimmer of hope in this pint-sized crisis, experts say.
These brewing titans have announced a price surge coming our way this fall, affecting both bottled and draft beer. This change will ripple through not only large retailers but also the hospitality industry. Yet, fear not the foamy apocalypse just yet, as market analysts have spotted a surge in promotional beer prices in retail.
Krombacher, a top dog in the brewery rankings, has dominated Germany's beer market for quite some time. Veltins, nestled cozily behind Krombacher and Bitburger, follows closely. The question lingers: Will other significant breweries join the price increase parade? As for the retail giants, it's a wait-and-watch game to see if they'll adopt and pass these price hikes to us, the consumers.
No word yet on the exact magnitude of these price increases. Industry insiders speculate that the price of a regular 20-bottle case could nudge up by around one euro.
Draught Special: More Expensive Brews Ahead
Start stockpiling your six-packs, beer lovers! From October 1, 2025, Krombacher's large customers will find their draft beer more costly. That's not all! Schweppes, Krombacher's soft drink sibling, is also upping its prices, citing increased costs as the culprit. Krombacher last increased its prices way back in spring 2023.
Meanwhile, Veltins, with its big draft presence in the hospitality sector, will implement price hikes for both bottled and draft beer from October 16, 2025. They aim to invest just as heavily in both retail and the hospitality industry in the face of rising costs, a Veltins spokeperson revealed. Veltins last hiked its prices in spring 2023 too.
Market Musings: Grab the Deals While You Can
In a surprise twist, large retail conglomerates have been wooing beer lovers with juicy promotions these days. Market researcher Marcus Strobl points out, "Prices are still under immense pressure." We consumers have seen an unprecedented selection of chances to buy beer for prices below the shelf price.
Regular buyers of major pilsner brands have been getting about two-thirds of their bottled beer through promotions, like snagging a case for 9.99 euros. With new price increases from major breweries, the chasm between the standard price and promotional price in retail is expected to expand further. "Going back a decade, promotional prices of pilsner brands have edged up only slightly, whereas the standard prices have soared significantly," Strobl observed.
Stay tuned for more updates on this foamy saga!
Source: ntv.de, lme/dpa
Behind the Foam: Factors Impacting Brewery Prices
While the specific reasons behind Krombacher and Veltins' price decisions remain obscure, there are several factors that could be contributing to the rise in prices across the brewing industry:
- Raw Material Prices: Escalating costs of raw materials like hops, barley, and packaging could force breweries to jack up their prices.
- Production and Energy Expenses: Increases in energy costs and other production expenses can also contribute to price hikes.
- Wage Increases: Higher labor costs due to wage hikes could squeeze the profit margins of breweries, leading to price increases.
- Market Conditions: Competition and market demand can shape pricing strategies. If demand is high and supply is limited, breweries might choose to ramp up prices.
- Supply Chain Disruptions: Disruptions in supply chains, including transportation issues and raw material shortages, can inflate costs, translating into price raises.
- The manufacturing cost of beer is likely to increase for beer lovers, as both Krombacher and Veltins, prominent players in the beer industry, have announced price hikes, affecting both bottled and draft beer, starting from October 2025.
- In response to these price increases, the sports sector might witness an uptick in promotional offers on beer, as market analysts anticipate retailers could leverage these deals to attract consumers and maintain sales volume.
