Beer sales - Veltins: Football-EM-effect is blown up for breweries
Despite the eager fans, the Football European Championship brought no good business for German breweries, according to an estimation by Veltins. Due to the rainy weather and a general consumption restraint, the beer sales in Germany in June were approximately eight million hectoliters, and even lower than in the previous month, according to the brewery in Schmallenberg, Sauerland.
"The Football-EM effect has flopped for the breweries," says Veltins' power of attorney Michael Huber. While there were some local effects of increased beer consumption in certain cities' gastronomes, these remained local.
Breweries sell only about a sixth of their beer in Germany to the gastronomy, the largest part of their business comes from trade. Consumers in supermarkets and beverage markets are estimated to have held back, according to Veltins. The comparison with the "Summer Fairy Tale" 2006 is disappointing: At that time, the beer sales in June were reportedly around 11 million hectoliters, three million higher than in June of this year.
People have not gathered in large numbers to "Rudelgucken" (watching football together) in the course of the tournament, but rather watched football alone at home and drank relatively little beer, Huber says. "That's different from inviting the neighbors for a barbecue and drinking beer with them."
June Disappoints Expectations
Veltins also presented figures, according to which the family business sold about four percent more beer in the first half of 2024 than in the previous business year. The total output was reportedly around 1.7 million hectoliters. However, Veltins also recorded a minus in June.
The Brewery has 721 employees, the main plant is in Meschede-Grevenstein in the Hochsauerlandkreis. Among the major German competitors are the Oetker daughter Radeberger, as well as Oettinger, Bitburger, and Warsteiner.
Despite the European Football Championship bringing excitement among Soccer fans, the sales of beer at Breweries in Germany saw a significant drop, reaching approximately eight million hectoliters in June, as estimated by VELTINS. This figure was lower than the previous month and even disappointing compared to the alcohol sales during the "Summer Fairy Tale" 2006, exceeding thirteen million hectoliters.
The rainy weather and general consumption restraint played a significant role in this drop, leading some football enthusiasts to opt for Beverages other than beer while cheering for their favorite teams. This trend was also noticeable in Sauerland, where the brewery located in Schmallenberg reported lower beer sales than expected during the tournament.
Many Soccer fans chose to watch the tournament alone at home instead of gathering in Narrowberg to "Rudelgucken," leading to less demand for beer in gastronomes. As a result, German breweries derived less revenue from beer sales than they had initially anticipated due to the Football European Championship.
Despite this setback, VELTINS recorded a positive growth in the first half of 2024, selling around four percent more beer than the previous business year. With a total output of approximately 1.7 million hectoliters, the brewery continued to compete with major German competitors, such as Radeberger, Oettinger, Bitburger, and Warsteiner.
In the midst of an otherwise prosperous period for VELTINS, the European Football Championship proved to be a significant challenge for the company, as weather conditions and consumer behavior combined to dampen beer sales during the tournament.
