German Brewers Association warns against proposed beverage tax

Holger Eichele, Managing Director of the German Brewers Association, has warned that a proposed special tax on beverages would be “pure poison for the economy.” The warning comes as the German brewing industry undergoes a deep consolidation process, with an average of one brewery closing each week, often affecting long-standing family businesses.

Eichele cited several factors contributing to the industry's struggle, including declining beer consumption, high costs for energy, raw materials, packaging, and logistics, as well as weak consumer sentiment and a crisis in the gastronomy sector. He called on policymakers for competitive energy prices, reduced bureaucracy, and more reliable framework conditions.

The proposed sugar tax, supported by the CDU/CSU and SPD, is specifically criticized for targeting areas where breweries are attempting to expand. Eichele noted that many companies have established non-alcoholic soft drinks as a secondary business pillar alongside non-alcoholic beer. He argued that the tax would increase prices, burden medium-sized enterprises, and create significant new bureaucracy without providing actual health benefits.