Austria's beer brewing industry was hit hard by the corona pandemic. On average, the turnover of domestic brewers fell by around 20 percent in 2020. Companies that are dependent on the officially banned gastronomy, hotel and event industries even had to accept losses of up to 70 percent. This was announced by the Austrian Brewery Association in the annual balance sheet on Thursday.
Even if sales in the food retail sector were able to compensate for the decline, the slump among major customers was devastating: 840,000 hectoliters less draft and tank beer were delivered last year – a decrease of 46 percent compared to 2019. Converted to the beer prices in the inns that results in a loss of more than half a billion euros.
Short-time work saves jobs
That corresponds to around 170 million Krügerln that were not served, says Sigi Menz, chairman of the Austrian brewery association and co-owner of the Ottakringer brewery. “The fact that the majority of our customers were simply switched off from one day to the next hit us to a great extent.” Until now, thanks to state aid, this has not yet been reflected in layoffs or company bankruptcies, says Menz. But: “Some will not survive financially.”
Employment is currently still high thanks to short-time work: Around two thirds of the 3700 employees in the industry are on short-time work, says the chairman of the association – and calls on the government to extend this instrument. In addition, the beer tax, which is too high compared to Germany and the Czech Republic, should be halved and a reduced tax rate introduced for smaller breweries.
