Beer & brewers hit hard

With the closure of the hospitality sector across virtually the whole of Europe, almost one third of the European beer market was eliminated overnight.

BEER AND BREWERS HIT HARD BY COVID19 CRISIS

One beer in every three is typically served and consumed in a bar, pub, restaurant or café. For brewers, this is also by far their most valuable (a beer served in hospitality generates four times the value of the same beer sold in retail) route to market and, in the case of many smaller brewers, in fact their only way to reach consumers.

For up to three months in many countries, beers were left to languish in bar cellars and brewery storage, ultimately having to be destroyed or repurposed to allow the kegs to be filled with fresh beer for the hospitality reopening.

Many breweries switched their business models overnight, to include deliveries, brewery and pub take-aways and online shopping. But with events, festivals and private social gatherings also outlawed in most countries, nearly all the typical beer occasions were taken away. Any uptake in retail sales of beer was limited, short-lived and unable to compensate for the loss of the business through hospitality.

Some breweries simply stopped brewing, whilst a number of bars will regrettably have already served their last beer.

Beer and brewers hit hard by covid19

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