Glass bottle prices soar 80% for German beer brewers amid production and transport crises
20 May 2022 --- The German Brewers’ Association (GBA) is warning there could be a shortage of beer bottles this summer amid rising production costs and a lack of lorry drivers. PackagingInsights speaks with Nina Göllinger, the GBA’s press officer about the shortages and possible underlying issues.
“Although German brewers face this challenge every year, due to current events, the situation could possibly be more tense this time,” she highlights.
“The Brewers' Association is therefore appealing to consumers not to hoard empties in their cellars but to return them to retailers as soon as possible.”
Bottle shortages
Furthermore, the GBA’s chief executive, Holger Eichele tells German tabloid Bild the situation is “extremely tense”.
The shortage of glass bottles will mainly affect small- and medium-sized breweries, says Stefan Fritsche, vice-chief at the Brewers’ Association Berlin-Brandenburg. He explains this is because big breweries usually receive glass bottles first and highlights this threatens the variety in the German beer market.
The shortage of glass bottles will mainly affect small- and medium-sized breweries.Brewers have to pay 80% more for new glass bottles than a year ago. The cost of beer is also rising. It follows warnings that the cost of German beer could rise by up to 30% – also mainly due to the increase in energy prices.
Eichele says the best thing Germans can do is return glass bottles to retailers as quickly as possible, advising consumers not to “hoard empties in the basement.”
High energy costs
Göllinger explains that companies can no longer serve many routes because there is also a shortage of truck drivers and individual haulage.
“Due to high fuel prices, it is becoming increasingly difficult for breweries and the beverage trade to maintain supply chains. This also makes the procurement of empties very challenging for breweries.”
In addition, Eichele says a lack of lorry drivers made it harder to maintain supply chains. As a result, he says the cost of new glass bottles had nearly doubled in the last year.
Also other packaging markets are also being severely hit by rising energy prices. The confederation of European paper industries has written to the European Commission urging immediate action over “devastating” energy costs, which it says could cripple the Single Market, threaten millions of jobs and destroy the chance of achieving UN Sustainability Goals.
Germany’s “unique” system
The German Brewers’ Association warns there could also be a lack of lorry drivers.
In Germany, glass bottles are sold with a small deposit, and beer drinkers are expected to bring them back to the shop when getting their next round.
Also, cans used elsewhere in the world are far less common and many breweries use customized bottles that are tricky to replace.
Göllinger explains the 1,500 German breweries alone put up to four billion returnable bottles into circulation. “The climate-friendly reusable system in Germany is unique worldwide.”
“Unfortunately, it is also uniquely expensive at the moment: the extreme rise in energy prices is currently causing the production costs for new glass to skyrocket. Those without long-term supply contracts currently have to pay 80% more for new glass bottles than a year ago. Some breweries are therefore threatened with idling, they may soon be without bottles,” adds Göllinger.
“Both the supply of beer and empties are currently secure in Germany. Most breweries are planning for the long term and with foresight. We see impending bottlenecks in the summer at the latest when beverage sales go up as they do every year. The longer the hot weather lasts, the more difficult the empties situation can become,” warns Göllinger.
By Natalie Schwertheim
