Will the Krombacher strikes affect beer production?

Brewery workers at German beer producer Krombacher went on strike this week after disputes over wages had not been met.

According to the food, beverages and catering union (NGG) which represented the brewery workforce, the strike, which began on Monday, is part of a collective bargaining dispute within the industry over fair pay

The NGG has outlined that it wants a 6.6% wage increase for all brewery employees this year, however, employers have so far only offered 2% for this year and 2.2% for next year.

Now, the growing concern among beer fans is that, without resolution, beer production at Krombacher could also be cut during the summer months.

Speaking about the issue in local press, Isabell Mura, deputy NRW regional chair of the NGG and managing director of the NGG South Westphalia explained that the strike falls just before the beer-hungry holidays of Ascension Day and Pentecost and warned that summer thirst could also suffer since reduced beer production would then also make barbecues and summer festivals drier.

The market leader in Germany and among the most modern beverage suppliers in Europe, Krombacher beers are now available in more than 50 markets worldwide and in Germany and globally, the Krombacher Group as a whole has already shown flat annual results despite challenging market conditions. However, the Krombacher umbrella brand has otherwise performed significantly better than the industry average. At 5.739 million hectolitres, the decline here was only 0.3%.

In the UK, the brand has over 300 draught taps now in operation in pubs, bars and restaurants and the brewery’s beers are widely available in stores and supermarkets from the likes of Tesco, Morrisons, Majestic, Ocado, Booths and a range of others.

Mura highlighted to the press that at least everyone who works full-time at the brewery must earn €280 more per month and insisted that this will primarily benefit those who are not higher up the wage ladder – for example, brewers. Plus, Mura pointed out that apprentices should also receive more money too, to the tune of approximately €130 per month.

Describing the offer of 2%, Mura explained that the amount being offered was too small a wage increase for properly brewed beer.

Speaking to db, Krombacher’s head of communicatioons Peter Lemm insisted that the brewery “will not be commenting on either the strike or the ongoing wage negotiations”.

However, Lemm has assured db that the strike this week has had “no impact on our production or delivery capacity” and reiterated “we were and are able to deliver continuously”.

The union and the brewery employers in the Sauerland and Siegerland regions will meet for the third and decisive round of negotiations on 8 July to try to resolve the disputes and from that point onwards decisions will be made between the union and workforce as to whether further strikes will take place over the summer.

Germany, historically revered for its brewing prowess, is seeing its beer reputation wane. Recent figures from the Statistisches Bundesamt office have revealed that global interest in German beer is rapidly diminishing alongside continued ambivalence for local beer in Germany itself.

Assessing 2024 figures from the country’s Federal Statistical Office, EWN it was highlighted how Germany exported 1.45 billion litres of beer last year — marking a 6% decline compared to 2014. Notably, more than half of these exports (55.7%) were shipped to fellow EU member states, showing that domestic thirst had already started to reduce.

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