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FOOD AND DRINK

How alcohol-free beer is booming in Germany

All the fun of the Oktoberfest, without the hangover: Germans are swapping traditional beer for non-alcoholic brews, driven by health concerns and the increasing quality of booze-free options.

BRLO Naked alcohol free beer
Labels to be glued on beer bottles of non-alcoholic "Naked" beer are pictured at the BRLO brewery in Berlin's Spandau district on August 21st, 2023. Photo: Tobias Schwarz /AFP

Beers containing less than 0.5 percent alcohol — the legal limit to be classed as non-alcoholic — are no longer an uncommon sight in the country’s famous beer gardens.

“I like the taste of beer, but I don’t find it reasonable to always drink it with alcohol,” Kathrin Achatz, 40, told AFP at the BRLO beer garden in Berlin.

According to federal statistics office Destatis, the volume of non-alcoholic beer produced in Germany has almost doubled over the past 10 years, reaching 670 million litres in 2022.

In a 2022 survey by the Allensbach Institute, non-alcoholic beer represented around seven percent of total beer purchases.

“We are seeing a strong increase in demand,” said Holger Eichele, head of the German Brewers Federation, which represents the interests of the brewing industry.

BRLO, whose beer garden is located in Berlin’s central Kreuzberg district but which produces most of its beer from a brewery further out in Spandau, was an early adopter.

READ ALSO: Germans drinking more alcohol-free beer

Improved brewing techniques

The brewery, which prides itself on producing all its beer in Berlin, launched its “Naked” non-alcoholic range in 2017.

Since then, sales have grown sharply, with a jump of 60 percent in 2022 compared to 2021.

“Since day one, this beer has been appreciated by our customers,” said Michael Lembke, one of the brewery’s managers.

Inside the brewery, about 15 workers clad in heavy boots are busy assembling orders in a maze of pipes and conveyor belts.

Around 160 hectolitres of Naked beer are produced here every month.

BRLO Naked alcohol free beer

Beer bottles to be filled with non-alcoholic “Naked” beer are pictured at the BRLO brewery in Berlin’s Spandau district on August 21th, 2023. Photo: Tobias Schwarz / AFP

Launched in the 1970s, non-alcoholic beer was initially designed for a niche market: motorists, pregnant women or recovering alcoholics.

But in recent years, the booze-free beverage has broken into the mainstream. The number of brands on offer has doubled since 2010 to reach more than 700, according to the German Brewers Federation.

This is partly down to improved brewing techniques that have led to an increase in quality — something that had previously held non-alcoholic beer back from breaking into the mass market.

At BLRO, the drink is made with a special yeast that prevents alcohol from being created during fermentation, without compromising on flavour.

The beer is fermented for a week in the brewery’s huge grey vats.

‘Enormous potential’ –

The boom in non-alcoholic beer in Germany has also been partly down to health trends and a growing awareness of the harmful effects of alcohol.

“There is a growing awareness of health imperatives in the population,” Eichele said.

“Sometimes you want to have a drink, but you don’t want to feel the effects of alcohol,” said Max Thomas, a 44-year-old Berlin-based Briton.

Although Germans are among the biggest consumers of alcohol in the world, at 10 litres of pure alcohol per inhabitant per year, consumption is falling, especially among young people.

READ ALSO: Five things that are changing about Germany – and five that never will

According to a study by the Federal Centre for Health Education, 8.7 percent of young people aged 12 to 17 drink alcohol at least once a week. In 2011, that figure was around 14 percent, and in 1979 it was 25 percent.

The average German consumed 87.2 litres of beer in 2022, compared with nearly 100 litres in 2013, according to Destatis.

The industry is therefore expecting non-alcoholic beers to continue to grow, with the Brewers Federation predicting they will eventually account for 20 percent of the market.

“It will not completely replace classic beer, but it has enormous potential,” Eichele said.

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ECONOMY

Why two leading grocery delivery apps are leaving Germany in May

Speedy delivery services boomed during the Covid years, offering customers the chance to have groceries delivered in minutes. But now two of Germany’s bigger players are leaving the country entirely. Could this be the end of the on-demand delivery trend?

Why two leading grocery delivery apps are leaving Germany in May

Speedy delivery start-ups Getir and Gorillas will leave Germany by mid-May.

After the 15th, customers will no longer be able to order groceries via the Getir or Gorillas apps, and delivery couriers in Getir’s branded purple suits, or Gorilla’s black jackets, will no longer be seen making dizzying laps on Germany’s urban streets.

Getir’s remaining warehouses will be closed down over the next couple weeks. According to WirtschaftsWoche, 1,800 Getir employees in Germany have already received termination notices.

The Gorillas app has continued to serve customers but is owned entirely by Getir, meaning that grocery delivery by Gorillas will also cease in Germany this month.

Why are grocery delivery apps failing?

The speedy grocery sector, sometimes called quick commerce (Q-commerce), grew immensely in recent years. But none of the fast grocery delivery start-ups have managed to turn a profit. 

They have instead been fuelled by large sums of investor money, which was easy to grab when customer numbers rose through the Covid pandemic.

Turkey-based Getir was founded in 2015 and began rapidly expanding in Europe six years later. At its peak, it had a valuation of $12 billion (€11.2 billion).

Meanwhile, Berlin-based Gorillas was founded in 2020, and expanded rapidly across the capital city, subsequently rolling out across Germany and the EU and even entering the US.

Shortly after Gorillas came Flink: yet another Berlin-based grocery delivery start-up, but in pink. Both Gorillas and Flink succeeded in achieving unicorn status, meaning that they grew to a $1 billion valuation within their first year of business.

However, Gorillas’ shining success was short-lived. From early on, the start-up faced criticism from workers who complained about physically hazardous working conditions, faulty gear, and stressful performance demands. 

Meanwhile the company was rapidly burning through investment capital in its efforts to expand into new markets and coax in new customers with hefty discounts.

READ ALSO: German discount supermarket Aldi Süd launches delivery service

Getir bought Gorillas at the end of 2022, despite signs that Gorillas was crashing at the time.

One year later, the writing was on the wall for Getir as it began winding down operations in France, Italy, Spain and Portugal. In August of 2023, Getir announced that it was laying off 2,500 workers, equal to about 11 percent of its staff at the time.

According to British broadcaster Sky, shareholders have agreed to give further funding to Getir on the condition that the company withdraw from the UK, Germany and the Netherlands to instead focus on expansion in its home market in Turkey.

With Getir and Gorillas out of the way, Flink has secured its position as Germany’s market leader. According to Flink, its annual turnover is twice as much as Getir’s, at €560 million.

But even as the clear market leader, whether or not Flink can succeed in making rapid delivery profitable remains to be seen.

The company reportedly secured a further €100 million to extend its runway in Germany for the time being.

Betting on speed was a fatal miscalculation

Those who lived in Germany’s bigger cities in 2020 or 2021 may recall a period when delivery apps like Gorillas, Flink and others were dominating advertisement spaces on the streets and in U-bahn stations.

Gorillas infamously promoted deliveries in “ten minutes” on its billboards, and even on the backpacks and jackets that its riders wore.

Gorillas backpack on a rider

“Groceries delivered in 10 minutes” was among Gorillas’ initial marketing campaigns. Photo: picture alliance/dpa | Annette Riedl

Eventually the brand phased out the ten minute suggestion, presumably because most deliveries took longer than that. But it stuck with speed-focused marketing, turning instead to slogans like “faster than you”.

But market analysts have since determined that the focus on speed was a mistake. Logistically, providing super quick deliveries requires too many warehouse locations and too many employees.

With rents and other costs increasing recently, the weaknesses of the speed-based delivery business model were exposed.

Delivery jobs can be hazardous and exploitative

Delivery start-ups also faced protests and bad press as delivery and warehouse workers complained that they suffered immense stress on the job, and bodily injuries. 

Furthermore many delivery companies stood accused of trying to circumvent workers’ protections, traditionally seen as a key pillar of Germany’s social market economy, by hiring most of their workforce as “self-employed” contractors rather than full or part-time employees.

Gorillas, in particular, faced an onslaught of bad press for years as the so-called Gorillas workers’ collective organised countless protests against the company, and dozens of cases of wage-theft were brought in Berlin’s courts.

Even as Gorillas and Getir exit Germany, these issues can be expected to continue.

On Friday, German and Dutch food couriers protested in front of the headquarters of Just Eat Takeaway in Amsterdam. Just Eat Takeaway is the parent company for Lieferando, which has about 7,000 employees in Germany. 

In response to these kinds of labour disputes, the EU Parliament recently adopted a Platform Directive aiming to improve the working conditions and rights of platform workers at food delivery companies, including measures to prevent companies from hiring “self-employed” workers.

The EU directive also hopes to provide protections for consumers. Companies with delivery apps will be obliged to provide more transparency about how their algorithms work.

READ ALSO: REVEALED – Where to buy groceries on a Sunday in Berlin

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