Page 29 - bon-dia-aruba-20200420

A29
BUSINESS Monday 20 april 2020
Virus outbreak threatens Germany's tradition-laden breweries

By CHRISTOPH NOELTING
and DAVID McHUGH
Associated Press
WERNECK, Germany (AP)
— 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 fi-
nally met a challenge it
can't overcome: the coro-
navirus outbreak.
The brewery, which trac-
es 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 lo-
cal 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 vi-
rus outbreak threatens the
existence of the country's
many local producers of
the national beverage -
community institutions, of- In this, Friday, April 17, 2020 photo junior director Christine Lang of the "Wernecker brewery" stands in the brewhouse of the brewery
ten family owned for gen- in Werneck, Germany.
erations, whose buildings Associated Press.
and affiliated taverns are
regional landmarks in a already hard fought with and delays in collecting on traditional pilsners and delivered for 25 euros ($27)
country where the home- tough price competition, taxes are less useful, brew- wheat beers. More diver- so they can taste along
town brew is often a sen- she said. Then came the ers say. Credits mean tak- sified producers are better with the chat on April 23.
timental favorite despite virus, and the restaurant ing on new debt for the equipped to survive. Wel- The Schumacher Brewery
competition from national customers the brewery de- future, and the taxes will de, a family run brewery in Duesseldorf is offering
brands. Hardest hit are pended on were suddenly eventually have to be paid near Heidelberg that traces drive-through service on
smaller breweries that like closed, with no clarity on as well. its history to 1752, normally Fridays and no-contact
the one in Werneck that when they might open. Holger Eichele, secretary sells about a third to retail home delivery. The web-
depend on supplying kegs "No one knows how long general of the German outlets, a third to wholesal- site of the Gaffel brewery
to local taverns and events the coronavirus will last, Brewers Association, said ers who supply events and in Cologne, which makes
such as local festivals. Res- when there will be an im- that "many breweries will sports clubs, and a third to the city's trademark beer
taurants are closed and provement, and whether not survive this crisis, that is restaurants. dubbed koelsch, encour-
the government says mass the restaurants will open already becoming clear." Managing director Max aged home consumption
gatherings will not resume again at all," she said. In addition to longtime Spielmann, who represents by showing two neighbors
until Sept. 1 at the earliest "And in our business it's the brewers focused on restau- the ninth generation of on adjacent balconies en-
— and even then it may case that a beer that isn't rants, "we also have many Spielmanns to run Welde, joying what the company
take years before they re- drunk today won't be con- entrepreneurs, that is, craft estimates that 30-40% of says is "the best koelsch, by
bound to levels seen be- sumed twice in a couple of breweries, that are not yet sales will be lost in April, May a good distance," a pun
fore the virus outbreak. months, the sales revenue profitable, that have bor- and June. "If you have 85% on the social distancing re-
Retail sales are providing is gone, lost." rowed money to finance of your sales in keg beer to quirements of the moment.
some support as people According to a survey by their startup, and it's also restaurants, then you only Says Spielmann: "All my
drink at home. Breweries the national brewers asso- very difficult for them." have 15% of your revenue forecasts say that we will
are trying things like drive- ciation some 87% of brew- The unexpected shock left," he said. "The only sales get through it, with a black
through sales and even eries say they are putting comes at a time when channel that is doing well is eye." He thinks the crisis
shipping beer and glasses workers on short hours, tak- enthusiasm for craft beer retail sales in grocery stores, could spur people to sup-
to customers so they can ing advantage of a govern- and microbreweries has one can see that the con- port their local brewers,
join an on-line tasting. ment program that pays up helped the industry over- sumption that normally food producers, restaurants
But for many the months to 60% of net salaries during come several decades of would have taken place and hotels, keeping inter-
without income may be business interruptions. The declining beer consump- in restaurants has shifted to national tastes for food and
more than they can han- program is aimed at get- tion. The number of brewers home." He and other brew- drink but indulging them
dle. ting companies through a has grown in recent years ers are trying new things close to home, a prospect
Family member and brew- crisis, keeping workers from to over 1,500, as startups out of necessity. Welde of- he called "glocal," combin-
ery manager Christine being laid off, and support- introduced new products fers an on-line beer tasting ing "global" and "local."
Lang said the decision to ing consumer spending in such as India pale ales on Facebook. Participants For Lang from the Werneck
close came with "many the economy. But other into what had been a very can have six different beers Brewery, something irre-
tears." The beer market was programs such as credits conservative lineup based and the appropriate glass placeable has been lost.q