Inside the most expensive Oktoberfest in history: the “extreme” escalation of costs shoots up the price of a mug of beer to 14.90 euros

2023-09-30 00:10:53

CRISTINA ALONSO

special envoy

Monk

Updated Saturday, September 30, 2023 – 00:10

Brewers expect a 10% revenue increase compared to 2022

Atmosphere in one of the Oktoberfest tents.Paulaner

Inflation has reached Oktoberfest, the largest beer festival in the world, held in Munich. Here liquid gold contains alcohol and foam and has not been spared from the escalation of prices as a result of the increase in energy costs and all the inputs necessary for production.

The price of a mug of beer fluctuates this year between 12.60 and 14.90 euroswhich represents an average increase in price of 6.12% compared to 2022, when it already shot up 15.77% compared to the 2019 edition, which was the last before the stoppage due to Covid in the following two years.

The prices, in any case, are not set by the breweries or the city of Munich. It is the owners of restaurant businesses in the area who establish each year the range allowed for the six brands of beer sold at the festival: Paulaner, Augustiner, Hacker-Pschorr, Lwenbru, Spaten y Hofbru.

Costs have risen extremely. The head chef of one of the most emblematic Oktoberfest tents, the Paulaner, states that in addition to the higher prices of inputs, Munich’s green energy policy is strict, which raises costs even further. In addition, in their case they serve organic chicken, also more expensive, and consequently, this year, The price has increased incredibly.

Although this is being the most expensive Oktoberfest in history, the influx of visitors is massive. The Germans, who make up 80% of the total public, seem oblivious to the macroeconomic situation of a country that is currently in a technical recession. The remaining 20% ​​are made up of foreigners, especially Italians, Americans and Austrians. In total, more than six million visitors are expected between September 16 and October 3.

The reason for this massive influx is in the climate. The good weather this year – it has barely rained one day so far during the festival – has favored the atmosphere, especially on the terraces. Paulaner’s financial director, Sebastian Strobl, attributes the flow of visits to the good temperature, unusual for the region at this time of year. He anticipates that, thanks to the fact that this factor is outweighing the rise in prices and encouraging consumption, brewers expect an increase in sales of 10% compared to last year.

Reduction of margins

Despite the general rise in prices, Strobl admits that sadly, margins are going to be reduced this year. The Oktoberfest represents less than 0.5% of Paulaner’s annual income, says the firm’s financial director, who adds that it is not a business in which we lose money, but we do not get rich either because it represents a significant investment.

Only in the construction of the tents, which are set up and dismantled in each edition of the festival, Paulaner spends 3 million euros. However, Strobl assures that even if the Oktoberfest did not make money, we would continue doing it. This festival with more than 200 years of history is part of its tradition and its DNA.

One of Paulaner’s great investments in recent years is materialized in the sophisticated supply system. Before 2010, the filling of the tanks in each of the brewery’s three tents was done individually. The man in charge of centralizing it is Uwe Daebel, an engineer trained in the brewing trade who managed to develop a beer distribution system through pipes that controls the necessary amount of supply in each tank and maintains the temperature at the precise level at all times.

This system allows huge quantities of beer to come out of the taps, always in perfect condition. Per day, about 70,000 liters in the largest tent, which has capacity for 8,000 people inside and another 2,500 on the terrace. This is explained by Rainer Kansy, Paulaner’s brewmaster, who points out that, in just one hour, 5,000 to 6,000 liters of the special beer they make for the Oktoberfest can be served. Commonly known as party beer, it is sold at 14.50 euros per jug this to.

Just a few days before the end of the largest popular festival in the world, replicated in many other cities inside and outside Germany, the Munich authorities report that, halfway through the Oktoberfest, 3.5 million people have passed through the venue and They have consumed 5.6 million liters of beer.