Virus outbreak threatens Germany's tradition-laden breweries

The Werneck Brewery has survived a lot: world wars, economic crises and decades of declining beer consumption.

But after 400 years in existence it has finally met a challenge it can't overcome: the coronavirus outbreak.

The brewery, which traces its history to 1617 and has been owned by the same family since 1861, is closing for good, taking with it 15 full-time jobs and more part-time positions.

Also gone is a chunk of local history and tradition in Werneck, a town of 10,000 people in the brewery-rich southern state of Bavaria.

German brewers fear its demise is the leading edge of more closures as the virus outbreak threatens the existence of the country's many local producers of the national beverage - community institutions, often family owned for generations, whose buildings and affiliated taverns are regional landmarks in a country where the hometown brew is often a sentimental favorite despite competition from national brands.

Hardest hit are smaller breweries that like the one in Werneck that depend on supplying kegs to local taverns and events such as local festivals.

Restaurants are closed and the government says mass gatherings will not resume until Sept 1 at the earliest and even then it may take years before they rebound to levels seen before the virus outbreak.

Retail sales are providing some support as people drink at home.

Breweries are trying things like drive-through sales and even shipping beer and glasses to customers so they can join an on-line tasting.

But for many the months without income may be more than they can handle.

Family member and brewery manager Christine Lang said the decision to close came with many tears.

The beer market was already hard fought with tough price competition, she said.

Then came the virus, and the restaurant customers the brewery depended on were suddenly closed, with no clarity on when they might open.

No one knows how long the coronavirus will last, when there will be an improvement, and whether the restaurants will open again at all, she said.

"And in our business it's the case that a beer that isn't drunk today won't be consumed twice in a couple of months, the sales revenue is gone, lost."
In addition to longtime brewers focused on restaurants, "we also have many entrepreneurs, that is, craft breweries, that are not yet profitable, that have borrowed money to finance their startup, and it's also very difficult for them."
"The only sales channel that is doing well is retail sales in grocery stores, one can see that the consumption that normally would have taken place in restaurants has shifted to home."