Brewery leaders warn of imminent closures for certain brewers due to the coronavirus pandemic.
Bitburg, Germany – The CEO of the Bitburger Brewery Group, Axel Dahm, expressed concerns about the resilience of some breweries amidst the ongoing coronavirus crisis. In an interview with the "Tagesspiegel" (Monday edition), Dahm suggested that the shrinking market could force some brewers out. However, he anticipates that major brewery collapses will be avoided this year due to relaxed insolvency rules and extended short-time work schemes.
In the following years, though, Dahm predicts that some brewers and hoteliers will succumb to the pressures created by the crisis. This forecast stems from observable hardships in the gastronomy sector. Yet, Dahm highlighted that not all breweries are currently experiencing a crisis.
In the context of the broader brewing industry, small and medium-sized breweries have been grappling with the aftermath of the pandemic, worsened by climbing costs and reduced consumer spending power. Despite these challenges, larger breweries, such as Bitburger, have been attempting to adapt through strategic marketing and partnerships, as exemplified by Bitburger's extended advertising contract and continued investment in its brand presence.
While Dahm did not directly comment on survival strategies, the commitment of the Bitburger Brewery Group to sustained advertising and community engagement indicates a proactive approach to market challenges. German brewing brands typically rely on strong links to local culture and dedicated consumer bases to weather economic downturns, a strategy that appears to benefit Bitburger.
As the uncertainty persists due to high operating costs and constrained consumer spending, smaller and independent breweries continue to face threats. Meanwhile, major breweries are likely to survive by focusing on brand strength and consumer engagement, as demonstrated by Bitburger's actions.
In summary, the outlook for breweries remains challenging, particularly for smaller operators. On the other hand, large groups like Bitburger appear more resilient thanks to their scale, marketing strategies, and devoted customer base. The Bitburger Brewery Group’s approach suggests a cautious optimism with an emphasis on long-term resilience through marketing and consumer loyalty initiatives.
In the following years, some brewers and hoteliers may succumb to pressures created by the crisis due to observable hardships in the gastronomy sector, as suggested by Axel Dahm. Despite these threats, larger breweries like Bitburger may survive by focusing on brand strength and consumer engagement, as demonstrated by their sustained advertising and community engagement efforts.
