Brewers fear bottle bottlenecks: gas crisis threatens to restrict beer production

After a long Corona lull, the beer mood in Germany is high again.

Brewers fear bottle bottlenecks: gas crisis threatens to restrict beer production

After a long Corona lull, the beer mood in Germany is high again. Nevertheless, the breweries are concerned about the future. A lot of the production process depends on the gas. In an emergency, not all types of beer can be produced, the industry warns.

In view of an impending gas shortage in Germany, breweries also fear that their production will be restricted. Almost all of the suppliers produce on the basis of gas, said Georg Schneider, head of the Bavarian private brewery Schneider Weisse and president of the Bavarian Brewers' Association, the "Spiegel". Paper labels have become much more expensive, as have crown caps.

In the case of malt, which is dried wheat or barley, two factors come together: high grain prices and energy costs. "I see the biggest problem with the bottles," Schneider continued. The glassworks would run on gas. "A failure would destroy the facilities and I doubt they would be rebuilt in this country." Schneider told the "Spiegel" that "if push comes to shove, we could no longer produce all types of beer and would probably have to concentrate on regional customers or wholesale".

His brewery itself is not dependent on gas for production. "For 15 years we have been generating our energy mainly with wood chips, i.e. with wood. Solar panels are also part of our mix." With regard to the prioritization of breweries in the gas supply, Schneider said: "We don't have to kid ourselves: We are not as systemically relevant as hospitals or the basic supply of food. But we are also relevant because we stand for downtime." Humans cannot live in crisis mode for 24 hours.

The supply uncertainty is extremely inconvenient for the breweries, as beer consumption in Germany is currently shooting up again after a pandemic-related low. The Veltins private brewery in Sauerland increased its output by 10.1 percent to 1.7 million hectoliters in the first half of the year. "Never in the history of the brewery has so much beer been brewed within half a year," said Michael Huber, the Veltins chief representative.

Despite the currently booming business, the company is also preparing intensively for possible consequences of the war - such as a failure of the gas supply. Veltins has taken extensive precautions to be able to guarantee production and supply security over a longer period of time, said Huber.

In order to maintain brewing operations when the gas supply was limited, precautionary measures were taken to switch from gas to fuel oil firing in the boiler house within a few hours, so that brewing could continue in the brewhouse without interruption. Additional heating oil tanks were installed. In view of the uncertain supply chains, the company has also expanded the stocking of new glass, pallets, labels and glue.

In the first half of the year, Veltins benefited from the fact that the catering and event business picked up again after the pandemic. "The good festival weather on the weekends and the desire of people to meet each other carried us solidly until the middle of the year," said Huber. That more than made up for the expected drop in retail sales after the end of the lockdown. After the most recent price increase in spring, the brewery is not planning any further increases in the sales price "in the foreseeable future". One does not want to overwhelm the customers, said Huber.