Germans Losing Their Thirst for Beer
B E R L I N, Aug. 1, 2001 -- 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."
Ammer blames German political leaders in particular forsteps that he said hurt the image of the national drink. Heblasted the recent decision to lower the legal drinking and drivinglevel.
The blood-alcohol limit was cut to 0.5 percent from 0.8percent, a move that especially hurt taverns in rural regions.
"There has been an hysterical campaign against alcohol," hesaid. But Ammer also acknowledges beer is no longer the drinkof choice for young Germans, whose abstemiousness is causingproblems for hundreds of struggling small breweries. "The youngpeople prefer exotic beverages and anything that is new."
Old Habits Die Easily
Beer is old. Very old.
The brew of water, hops, yeast and malt has been around formore than 3,000 years. In 1516 the German Beer Purity Law thatdecreed nothing but natural ingredients could be added madeGerman beer a standard others tried to imitate.
Brewed by monasteries in the Middle Ages, beer wasconsidered an important, healthy and necessary beverage. In the16th century people in Hamburg drank an average of about 850quarts each year, more than two quarts daily.
That tradition no longer seems to carry as much weight. Theyounger generations that have cast off other baggage from thecountry's turbulent and ignominious past are also happy to partways with their boozy heritage.
Beer Bellies
"I associate beer with beer bellies, flab and an unhealthylifestyle," said Lars Gessler, a 28-year-old student whonevertheless manages to stay trim despite drinking 50 quartseach year.
"Younger people want flat stomachs and good health," headded. "They just don't like the taste of beer. It doesn'ttaste good and it's not trendy. You can't savor it the way youcan enjoy a glass of wine. With beer you just chuck it down.Also, I think globalization has opened us up to other drinks,like cocktails, that come from other parts of the world."
The steady erosion of beer drinkers in the crucial 20 to 45age bracket has forced the country's brewers to rethink theirtime-honored strategies. Some in the fragmented industrydominated by local microbreweries have resisted the changes andsuffered from dwindling sales and profits.
Some, like the Karlsberg brewery in Homburg, have opted tochase the shifting taste buds of the younger crowds by addingnon-alcoholic beverages to their line-up and creating newdrinks made of beer mixed with cola, tequila, fruit juices orother ingredients.
No Longer Hip
"A lot of young people told us they didn't like the sharptaste of beer," said Karlsberg spokeswoman Ute Leitner. "Theywant something better. Beer just isn't cool enough anymore.It's not hip. It's what their parents drink."
Karlsberg tried to make its beer more attractive to youngertaste buds by introducing additives. Seen by some as nearsacrilege in the country that fought so hard to save its puritylaw, the drinks have nevertheless caught on.
In 1993, the company, which has 2,350 employees, came upwith a new drink called "Mixery" made up of beer, cola and asecret ingredient it calls "X."
"Mixery has become the most popular drink in night-clubs inthe entire region," Leitner said. Its alcohol content of 3.1percent is below the 4.8 percent level of many beers.Encouraged by the success, Karlsberg has also introduced a beerdrink mixed with apple juice that has a 2.8 percent alcoholcontent.
The beer may taste awful to the country's true aficionadosbut for those who prefer the real thing, there still 5,000brands to choose from.
And, despite the decline, the beer making sector is still ahuge and important industry. Millions crowd the beer tents eachSeptember at Munich's annual Oktoberfest.
"The consolidation will continue," said Erich Dederichs,managing director of the brewers' association. "But beer is apart of our culture and a part of our heritage, and it willstay that way."