German brewery says Euro 2024 effect 'flopped' amid sobering sales

A major German brewery on Friday reported disappointing figures for the beer industry in June, with an expected boom in consumption during the men's UEFA European Championships having failed to materialize.

Veltins representative Michael Huber said the "European Championship effect has flopped for the breweries," as rainy weather and a change in drinking habits dampened sales despite Germany hosting the tournament.

The brewery said German drinkers consumed an estimated 8 million hectolitres of beer in June, lower than in the same month in 2023. One hectolitre is 100 litres.

German breweries sell around one-sixth of their beer to the hospitality sector, with the lion's share of their business coming from the retail trade. According to Veltins, however, consumers in supermarkets and beverage stores have held back this year.

The comparison with the "summer fairytale" of 2006, when Germany hosted the men's FIFA World Cup, is sobering: beer sales in June of that year were reportedly around 11 million hectolitres.

During this year's tournament, fans have watched more games alone at home, instead of meeting up in large numbers and drinking more heavily. "That's different from inviting your neighbour over for a barbecue and drinking beer," Huber said.

To calculate the figures, Veltins used data from a logistics company it partly owns as well as other market estimates.

The brewery, based in the western German state of Saarland, on Friday presented figures showing that it sold 4% more beer in the first half of 2024 than over the same period last year, with total output reaching around 1.7 million hectolitres.

Nevertheless, the business - with 721 employees - recorded a loss in June. Its major German competitors include the Oetker subsidiary Radeberger as well as Oettinger, Bitburger and Warsteiner.