Germans Losing Their Thirst for Beer

ByABC News
August 1, 2001, 12:02 PM

B E R L I N, Aug. 1 -- The German passion for beer is goingflat.

The notion that Germans have an insatiable thirst for beerand guzzle their world famous beverage with breakfast, lunchand dinner may linger as a cliché, but breweries know thedepressing truth: beer consumption is falling and at afrightening rate.

Down by nearly 20 percent over the last two decades, beerdrinking fell another 2 percent in the 2001 first quarter andthere is no end in sight for the long and steady slide. Outputand turnover are also dropping and roughly half the country's1,270 breweries are believed to be unprofitable.

"The market is facing radical change," said Dieter Ammer,chairman of Beck GmbH & Co., the country's top exporter, thatwas recently put up for sale.

Beer may still be among the most important drinks inGermany, with some using the beverage for as much as half oftheir daily intake of fluids.

It is neither uncommon, illegal or even frowned upon forworkers to sip ales during mid-morning breaks or at lunch. Winning soccer teams traditionally douse each other in beer andcelebrate their victories with huge foaming mugs. Vendingmachines often have beer and you can even order a plastic cupof it at fast-food restaurants.

But despite the easy availability, per-capita consumptionhas dropped to 133 quarts from a peak above 165 quarts in the1980s, sending the former world champions in Germany to thirdplace behind the Czech Republic at 159 quarts andIreland.

Abstinence Does Not Make the Heart Fonder

Brewers attribute the beer drinking slump to severalfactors, including stiffer drinking and driving rules, increasedcompetition from wine and non-alcoholic beverages, a new-foundhealth consciousness and the fact that Germany is a maturemarket with a stagnant population.

Most worrying for the beer makers is a strong shift awayfrom beer by younger Germans who consider it a rather stuffyand old-fashioned drink.

"The wind is blowing against us," said Ammer, Beck'schairman, who is also head of the German brewers' association."And it looks like the trend will continue."