Brewing balance 2023: Output at very high pre-pandemic level
Vienna (OTS) – The domestic beer industry recorded a satisfactory result in 2023: Total output in the previous year (beer including non-alcoholic beer and exports) amounted to 9.98 million hectoliters, which is close to the very high pre-Corona level of 2019. Domestic beer sales (including AF beer) were 8.55 million hectoliters[1], exports amounted to 1.43 million hectoliters. The new chairman of the Brewers Association – Karl Schwarz – discussed why a direct comparison to the previous year is “simply inadmissible” at this year’s annual press conference.
„2023 was a difficult year characterized by historically high inflation and a change in sales markets as well as consumer restraint. Taking these aspects into account, we can be satisfied with the results
“, emphasizes Karl Schwarz. Especially since 2022 was the year with the “highest beer output since the 1990s”.[2]. According to Schwarz, the direct comparison of the two years is therefore only of limited significance, as 2022 was characterized by “catch-up effects” and therefore simply not representative. “A decrease in emissions of just three percent[3] Compared to the exceptional year before, this is a more than solid result.
“Nevertheless, certain developments among consumers, including the more conscious use of alcohol and the demographic-ethnic change in society, are “reality that brewers have to face.”
In addition, the cost burden on the breweries is still high and cannot be passed on 1:1 to retailers and restaurants. The high wage agreements in the last two years also “affect the price of beer.” The new chairman is therefore once again calling on the government to “straighten up” the beer tax imbalance and reduce it by half. Compared to neighboring countries and other alcoholic drinks, it is “significantly too high” and further drives up the price of beer.
Sales fluctuations throughout the year
While the first quarter of 2023 went well in domestic output with a one percent increase, consumer sentiment deteriorated noticeably for the first time in the spring due to high inflation: the result was a nine percent decline in sales. Over the summer, which in terms of tourism was already close to the record numbers from 2019, the beer market recovered (+/- zero compared to 2022), and in the fourth quarter there was a decline of two percent despite well-booked restaurants.
Gastronomy is changing: in 2023 it was “closing time” every other day for a pub.
The two percent decline in sales of draft and tank beer in the catering industry is “multifactorial” and is hurting the industry because of the higher contribution margins: Due to inflation, less is being consumed and a wave of closures is rampant among the “classic places where beer can be enjoyed” such as taverns. The structural change in the catering industry is obvious and is causing “worries and headaches” for the beer industry. “Literally no stone is left unturned
,” says Schwarz. In particular, those types of restaurants that have recorded high beer sales in the past are particularly affected by the crises. According to the gastronomy trade association, the number of restaurants with proven beer expertise has fallen[4] by over a quarter between 2013 and 2023; When this is transferred to pure beer bars/pubs, the picture is even more dramatic: here the number of bars fell by 34 percent. In absolute numbers, that is almost 2,000 fewer companies than ten years ago. “Last year alone there was an inn or beer bar every other day[5] locked
“, emphasizes Schwarz. “The classic country inn finds itself in a vicious circle of rising prices and costs, combined with declining sales, a lack of staff, rural exodus and excessive bureaucracy
“, he attests. The increasing number of home offices is also having a negative impact. The urban area is better positioned here than the rural area.
Inns – and thus traditionally important and large customers for beer brewers – are shrinking, while ethnic bars and system restaurants are booming. “These types of businesses rely less on beer expertise or don’t serve beer at all,” Schwarz reports.
Bright spots: fine dining, lunchtime business and beer know-how
Upscale restaurants are showing far fewer problems, and the hotel industry is also consistently well booked. “In 2023, a new restaurant opened every third day
“ [6]said Karl Schwarz about the good news. “Upscale restaurants have corresponding demands. We have to succeed in winning them over as beer ambassadors. This is where we start with a mix of measures.
“
In order to be able to be even more successful as an industry in restaurants in the future, the brewery association is focusing on disseminating beer knowledge – in the last two years, for example, about draft beer on social media. In addition, the training offensive for (young) beer sommeliers “ensures more beer expertise and advice directly to the guest.” In total, around 3,400 Austrians have completed the training so far. We are proud that the state championship for beer sommeliers will be held again in 2024. “On May 31st, the tobacco factory in Linz will become the beer center of the country
“, says Florian Berger, managing director of the brewery association.
Non-alcoholic beer as a future market
One of the developments that will be particularly noticeable is the “victory of non-alcoholic beers”, which has become increasingly noticeable in recent years due to changing consumption habits. Non-alcoholic beer has long since shed the image of not being a real beer: thanks to the latest technological developments, non-alcoholic beer gains character and depth and tastes as good as its alcoholic counterpart. Due to the new variety of varieties, this area is seen as having great potential – both within the beer-loving population and outside of it. In Austria, “almost 29 million liters of AF beer were brewed for domestic consumption last year.”
AF beer is on the rise across Europe; the share of non-alcoholic beer in beer production in Europe is estimated at around five percent[7] – that in Austria was three percent last year. “Classically beer-loving countries like Germany and the Czech Republic show how it can be done: our German neighbors already have an AF beer share of 7.6[8] percent, in the Czech Republic at 6.3%[9]. The decline in emissions can be offset by non-alcoholic alternatives, and consumers remain in the world of taste and experience of beer. If we take the European average as a model and apply it to Austrian proportions, then we are talking about a potential of 42 million pages or 28 million mugs more AF beer[10]
“, so Berger.
Another indicator of the boom in AF beers is the fact that several categories have been included for this type of beer in all renowned national and international beer competitions – be it European Beer Star or Austria Beer Challenge. “Breweries large and small are devoting themselves to the topic and fighting for awards,” says Berger.
“The little sister” of the classic 0.5 l reusable beer bottle is introduced
There is further development not only within the bottle, but also in the bottle itself. In the spirit of climate protection and the circular economy, the beer brewers are taking responsibility: Now that more and more beer drinkers are opting for the 0.33 liter beer bottle – which has a share of the container has more than doubled in recent years and was already at nine percent in 2023 – this bottle will now also be reusable on a large scale: together with Vetropack A new standard bottle called “Vichy” was developed, which will be available in grocery stores in the first quarter, just in time for the mandatory MW quota that has been in effect since January. Two large breweries are starting, with more to follow. “Vichy” is visually very similar to the “learned 0.5 l reusable beer bottle” and, in addition to its pleasing appearance, also scores points with its inner values: it has a high proportion of recycled glass and therefore uses less material and less energy production, is break-proof and lighter thanks to a new hardening process and has a longer service life. Thanks to optimization in logistics, the corresponding CO2 emissions are reduced by a fifth.
The Austrian Ecology Institute compared the CO2 balance of 0.33 liter beer bottles: Using a reusable beer bottle produces up to 84 percent less CO2eq. than a disposable bottle. Although disposable glass bottles are not subject to the future single-use deposit regulations, the beer industry is consciously switching to reusable containers: “Our member companies practice circular economy and climate protection
“, says association managing director Florian Berger.
In 2023, 816,809 hl of beer were filled into 0.33 l bottles, of which 608,094 were in disposable glass bottles – this corresponds to 182 million bottles that are melted down again after one use. Berger therefore puts the theoretical potential for the new 0.33 l MW beer bottle at almost “200 million bottles per year[11].” The bottles can be returned to all reusable deposit machines; the deposit amount is 20 cents/bottle.
Increase in deposits on beer bottles is “inevitable”: straighten out the imbalance
With regard to the introduction of the one-way deposit[12] For beverages in cans and plastic bottles, the local breweries also want to adapt the deposit amount to the 0.5 l MW beer bottle: The deposit amount of 9 cents gross has remained unchanged since the introduction of the reusable deposit system more than 40 years ago. “When the euro was changed over, one shilling per bottle became 7 cents net
“, says Schwarz. The Association of Austrian Breweries is currently “in close contact with all affected stakeholders” in order to advance the complex issue. The aim is for a deposit amount that also corresponds to the replacement value of new bottles. This is “far from being the case at the moment.” The low use is increasingly leading to MW containers, especially in urban areas, “not being returned, but rather being disposed of.” Because: “If it doesn’t cost or produce anything, it’s worth nothing.” Disposable containers Containers such as cans should not displace the 0.5 l MW bottle due to the higher deposit when returned. “Nobody can want that. Reusable is THE symbol of circular economy.
“
Lager/Märzen beer remains the most popular: local beer drinkers are conservative
As has been the case for many years, “Lager-/Märzenbier” leads the ranking of the most popular varieties within Austria. “Local beer drinkers are very loyal to their favorite taste
Florian Berger knows: 5.9 million hectoliters of Märzen beer were drunk in 2023, which corresponds to a domestic market share of 69 percent. Second place goes to other full beer with 1.1 million hl and a 13 percent market share, followed by specialty beer (four percent), draft beer, pilsner, shandy with alcohol and non-alcoholic beer including shandy, each with a three percent market share. Remarkable: Bock beer almost doubled in volume last year (+93 percent from 19 to 38,000 hl).
When choosing containers, glass is still “number one” at 56 percent, followed by barrels and tanks (18 percent). The reusable share of beer in Germany is still 66 percent, of which 46 percent (around 3.90 million hl) is the classic 0.5 l reusable beer bottle. The proportion of cans is 27%, in Vienna “7 out of 10 beers sold are canned beers”[13].
About Beer Country Austria:
Bierland Österreich is the communications presence of the Association of Austrian Breweries, the interest group for the Austrian brewing industry. The association in its current organizational form within the framework of the Austrian Economic Chamber took over the representation of the interests of the Austrian brewing industry in 1945 and thus the agendas of the so-called “Brauherren-Verein” founded in 1850.
Austria, the beer country with tradition, enjoys a healthy regional structure. Almost 350 breweries fulfill every wish of responsible beer drinkers with their extensive product range and an output of almost 10 million hl per year. In 2023, Austrian breweries achieved sales of more than €1.4 billion, and taxes on beer bring the Austrian state budget around €700 million annually. The industry employs around 3,300 highly qualified workers.
Graphics and photo download:
https://bierland-oesterreich.at
[1] Domestic emissions -2.5% to 2022, exports – 6% to 2022
[2] Total output in 1,000 hl: 1990: 9,592; 2022: 9,757 (beer incl. export excl. AF)
[3] Total output in 2023 including AF beer and export: 9,980,312 Hl versus 10.29 million Hl in 2022 (-3%)
[4] Inns as well as beer halls and pubs; Source: Catering Association, 2023 statistics by business type excluding dormant ones
[5] Number of inns & beer bars 2022: 5,474, 2023: 5,281; Statistics 2023 by company type excluding dormant ones
[6] Number of restaurants 2022: 7,523, 2023: 7,648, 2023 statistics by business type excluding dormant ones
[7] Estimate by the Association of Austrian Breweries; not all countries report to the European The corresponding figures for the umbrella organization and the definition of AF beer are not uniformly regulated
[8] Source: German Brewers Association 7.6% including malt drink, excluding malt drink 6.7%
[9] Source: Czech Brewers Association
[10] Average AF share of 5% of the overall market; Base domestic beer output 2023; of which 5% less existing AF output
[11] Source: In 2023, 608,000 Hl were filled into 0.33 l EW bottles = 182 million bottles
[12] One-way deposit from January 1, 2025; 25 cents/can or PET bottle
[13] Source: Nielsen IQ
Questions & Contact:
Inquiry note:
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www.bierland-oesterreich.at
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