Germany: Beer prices are forecast to rise

FIN24 published on November 29 that Germans will have to dig deeper into their pockets to buy a round of beer next year as a result of rising malt prices, soaring energy costs and the upcoming rise in value-added or sales tax (VAT), according to the head of one of the country's biggest breweries statement on November 29.

Radeberger chief executive Ulrich Kellmeyer estimated that consumers may have to pay €1 ($1.30) extra for a 20-bottle case of beer. "The market is going to have to get used to a price of &euros; 15 per case," Kellmeyer said.

Germans are among Europe's champion beer drinkers, with annual consumption reaching 129.4 litres for each person over 15 years last year, according to recent statistics. However, the trend has been pointing downwards in recent years, even if the World Cup soccer championships and the hot summer is likely to have led to an increase in beer sales this year of 0.8%. By contrast, the industry expects sales to decline by 2.5% in 2007.

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