German Breweries Eye Austrian Pfand Hike as Model for Boosting Bottle Returns
German breweries are looking across the border to Austria for inspiration as thay push for a notable increase in the country’s bottle deposit system, known as “Pfand.” austria recently raised the Pfand for reusable glass bottles from 9 to 20 cents, a move aimed at helping smaller breweries struggling to retrieve their bottles.
stefan Stang, managing director of the Association of Private Breweries in Germany, told the “Bild” newspaper that the Austrian example will be closely watched. He emphasized that german breweries have long advocated for a Pfand increase, but have been met with resistance from retailers adn the Brewers’ Association, wich represents larger companies.
One of the main concerns raised against a hike has been the “stichtagsregelung,” a system that prevents price increases from taking effect until a specific date.This,critics argue,could lead to a surge in bottle hoarding before the increase,resulting in breweries having to buy back bottles at the higher price.
Dietrich Sailer, CEO of the “Münchner Kindl” brewery, echoed Stang’s sentiments, stating that Germany’s current pfand rates are outdated and no longer reflect the cost of replacing bottles. He acknowledged that the initial transition in Austria might lead to losses for breweries as they buy back older bottles at the higher price, but believes it’s a worthwhile investment for the long term.
the pressure on Germany to follow suit is mounting,especially when considering the stark difference in pfand rates. Sailer pointed out that a truckload of beer in Germany currently incurs a Pfand of €3.10, while the same load in Austria now costs €7. This translates to a potential tax-free profit of €5,850 for Austrian breweries, according to the “Bild.”
German Breweries Look to Austria for pfand Inspiration: An Exclusive Interview
Time.news Editor: The Austrian government recently increased the Pfand for reusable glass bottles, sparking a debate in Germany about mirroring this initiative. What are the key takeaways for German breweries from this Austrian progress?
Stefan Stang,Managing Director of the Association of Private Breweries in Germany: Certainly! The Austrian example is being closely watched in Germany. As you no, for years we’ve advocated for a Pfand increase here, arguing that current rates don’t reflect the rising cost of bottle replacement. Austria’s bold move, raising the Pfand from €0.09 to €0.20, could be a valuable model for us.
Time.news Editor: However, ther have been concerns within the German industry, especially regarding the “stichtagsregelung.” Could you elaborate on that?
Stefan Stang: Indeed.This system, which prevents price increases from taking effect until a specific date, is a sticking point. Critics argue that it could incentivize bottle hoarding before the Pfand hike, forcing breweries to buy back the bottles at the new, higher price.
Time.news Editor: Dietrich Sailer, CEO of Münchner kindl brewery, appears to be a strong advocate for change. What is his outlook on this?
Stefan Stang: You’re right. Mr. Sailer, like many others in the industry, believes firmly that Germany’s Pfand rates are outdated. He acknowledges the potential for initial losses during the transition, but stresses that the long-term benefits for the habitat and the industry as a whole outweigh these short-term challenges.
Time.news Editor: The article highlights a stark difference in Pfand rates between Germany and Austria. Could you elaborate on that?
Stefan Stang: Absolutely. A truckload of beer in germany currently incurs a Pfand of €3.10, while the same load in Austria now costs €7. This equates to a potential tax-free profit of €5,850 for Austrian breweries. This significant discrepancy underscores the competitive advantage Austria now enjoys and puts pressure on Germany to reconsider its own approach.
Time.news Editor: The topic of increasing Pfand rates has been discussed for some time now. What are the key ways forward for the German brewing industry?
Stefan Stang:
We need open and honest dialogue involving all stakeholders: breweries, retailers, environmental groups, and the government. This includes finding solutions to address concerns about the “stichtagsregelung” and ensuring a smooth transition. Moreover, its vital to educate consumers about the importance of Pfand and its role in supporting sustainable practices.
