Brewing Up a Storm: Krombacher and Veltins Announce Hefty Beer Price Hike
Brewing conglomerates intend to inflate the cost of beer
Get ready for a chill in your wallet, beer enthusiasts! Two of Germany's leading breweries, Krombacher and Veltins, have set pulses racing with the announcement of a price surge for both bottled and draft beer, coming into effect this fall. This decision is expected to ripple through the retail and hospitality sectors.
Krombacher, Germany's popular beer of choice as per "Inside" magazine's ranking, and Veltins, hot on its heels at the third spot, are about to make a dent in your wallet. With other big breweries yet to make a move, the question remains whether they too will follow suit. Additionally, the extent to which large retail corporations will pass these price rises onto consumers remains to be seen.
The breweries have been tight-lipped about the precise extent of the price increases, but industry insiders predict a hike of about one euro per 20-pack of 0.5L bottles.
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It's not just beer that's feeling the pinch. Starting October 1, 2025, Krombacher's large customers can bid farewell to their affordable bitter lemon brand Schweppes, as it too takes a price leap. A Krombacher spokesperson revealed that the price surge was announced to large customers about a month ago and is due to general cost escalations. The brand last raised prices in spring 2023.
Veltins, meanwhile, will pump up the prices for both bottled and draft beer from October 16, 2025. This news was shared with large customers at the end of May. The spokesperson explained, "We aim to invest equally in both the hospitality industry and retail due to increased costs." Veltins last increased prices in spring 2023.
In response to the price surge, NielsenIQ market researcher Marcus Strobl, observes an aggressive trend among large retail corporations courting beer drinkers with numerous price promotions. He noted, "Prices are still under pressure," presenting customers with numerous opportunities to bag beer below the regular price, a rare occurrence in recent times.
For years, consumers of major pilsner brands have been purchasing around two-thirds of their bottled beer at promotional prices, like a case for 9.99 euros in retail. With the new price increases from major beer manufacturers, the gap between regular and promotional prices is expected to widen further. Strobl clarified, "The promotional prices of pilsner brands have only seen a modest increase over the past decade, while the regular prices have shot up significantly."
Sources: ntv.de, lme/dpa
Extra Ingredients:
- Consumer Impact: The proposed price increases may lead to a steep hike in expenses for consumers, potentially affecting demand, with promo deals looking increasingly attractive compared to regular prices.
- Retail Shift: Retailers may witness a shift in consumer spending towards promo deals or switching to alternative brands, affecting retailers' profit margins and sales strategies.
- Hospitality Hurdles: For the hospitality industry, higher beer prices could lead to increased costs for establishments, potentially leading to higher prices for customers, impacting consumer spending in bars and restaurants.
- Competitive Dynamics: The price hikes by Krombacher and Veltins may instigate competitive responses from other German beer brands, potentially magnifying price increases across the market.
- Consumer Behavior: In response to the price surge, consumers might opt for alternative beverages or more affordable brands, affecting the market share of the major brands.
All in all, these price increases could create a more competitive and potentially challenging environment for both retailers and the hospitality industry in Germany.
The manufacturing costs of beer have escalated, prompting leading breweries like Krombacher and Veltins to consider finance and business decisions that will increase the price of their beers. With these price hikes, consumers may face a steep increase in expenses, potentially affecting their demand for these products, and leading them to seek promo deals or alternative brands. Exacerbating this situation, other German beer brands might follow suit, creating a more competitive and potentially challenging environment for both retailers and the hospitality industry in Germany.
