The case in summary: The sale of beer from small breweries has decreased by 16.7 per cent from April 2023 to April 2024. The brewery association believes the main reason is that people have received poorer advice and probably cheaper products. Several microbreweries are struggling to make production pay, but new breweries are also being established. The smallest microbreweries struggle the most with their finances due to expensive raw materials, expensive electricity and expensive distribution. Professor Tor W. Andreassen at NHH points to other factors such as health awareness, competition from large breweries and the aftermath of the pandemic as reasons for the decline. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. – We believe that quality and knowledge will ensure that this goes well, says Morten Svensson in the newly started microbrewery Tøsse Brygghus on Osterøy outside Bergen. The latest figures from the Brewery and Beverage Association show a decrease of 16.7 per cent from April 2023 to April 2024. This means that the sale of beer from so-called small-scale breweries fell from 816,877 liters to 680,478 litres. – When people can’t afford it, they buy cheaper products. In addition, cross-border trade has increased a lot, says Hege Ramseng, who is communications manager at the Brewery and Beverage Association. – People like bill variants A can of beer from a microbrewery can cost many kroner more than beer from the big producers. Last autumn, the association presented similar figures, together with the Norwegian Food Foundation. They showed the lowest sales volume since 2019 for Norwegian small-scale beer. – In the past year, we have seen clear signs that people are tightening their belts, and in the beer market, this means that people are more often looking for low-priced variants, said the association in a comment to the survey in the autumn. Morten Svensson in front of the large metal tanks where the beer is stored until it is poured into cans. The pensioner contributes to the brewery, but it is his son Per Helge Svensson who is the main owner and day-to-day manager. Photo: Martin Værum Anda / news Betting against the wind Several microbreweries are struggling to make production pay off. Lysefjorden Mikrobryggeri in Bergen recently shut down operations. Among other things, it was due to the challenging economy, according to Bergens Tidende. At about the same time, enthusiastic beer brewers in the neighboring municipality of Osterøy started a completely new microbrewery. – Here are the six tanks where we store the beer, says Morten Svensson when he proudly shows the new microbrewery Tøsse Brygghus on Tyssebotn. The 86-year-old has retired, but contributes to the brewery. When the son is on holiday, he takes news on a tour. They have learned that many microbreweries are struggling, but still have great faith in their own project. – The beer has been very well received, says Morten Svensson. He also adds that the company has a good financial basis for the investment, and can tolerate that it will take some time to establish itself in the market. Behind Tøsse Brygghus stands the traditional mill company Tøsse Mølle, which specializes in oatmeal. Among other things, they have brought one of the founders of the southern brewery Nøgne Ø with them in the new venture into beer brewing. Tøsse Brygghus Started in old industrial premises at Tyssebotn on Osterøy, and is the first microbrewery in the municipality. The grain mill Tøsse Mølle from 1866 is behind the brewery, together with Kjetil Jikiun, who is referred to as a pioneer in craft brewing and founder of Nøgne Ø. Per Helge Svensson is the main owner and day-to-day manager. Others who are central to the brewery are Geir Hjellvik, who owns a brewery in Crete, and Andreas Litland, a local brewer with extensive experience in home brewing. The beer will be sold at several pubs in Bergen, many shops in the Bergen area and will be available at Vinmonopolet in the autumn. Beer cans ready to be filled with beer at Tøsse Brygghus. Photo: Martin Værum Anda / news – Worst for the smallest The Brewery and Beverage Association says it is the smallest microbreweries that struggle the most financially. – It is more difficult for the smallest, with expensive raw materials, expensive electricity and expensive distribution. So relatively speaking, this will be more expensive for the little ones. You have to rise to a certain level before you can make a living from it, says communications manager Hege Ramseng in the association. Many of those who are a little bigger are doing much better financially. Among other things, Ramseng highlights the brewery 7 Fjell in Bergen. – We see that there are a number of medium-sized breweries that are doing very well. Those who deliver on innovation and manage to make good products do well, she says. communications manager Hege Ramseng at the Brewery and Beverage Association says that part of the microbrewery is doing well, despite the fact that the overall hall is going down. Photo: Brewery and Beverage Association Brewery and Beverage Association The purpose of the Brewery and Beverage Association (BROD) is to safeguard the members’ common interests vis-à-vis authorities, consumers, customers, national and international institutions/organizations and society in general. The members of the association are companies that produce beer, cider, mead, soft drinks, water or related products. To be a member, a significant part of the production must take place at its own facility in Norway. The association organizes both small breweries, soft drinks and water producers. We have around 130 members, of which 120 are small-scale producers. The association believes that there are many good reasons that the microbrewery should have the right to life. – It is important because it is about local identity, local pride and jobs in the districts. And then it is of course important that we have a wide selection of beer tastings and experiences, says the communications manager. They will work to improve the general framework conditions, including the tax level on beer. – Then we can only appeal to people to buy Norwegian products. – General decline Professor Tor W. Andreassen at the Norwegian School of Business (NHH) also points to other factors that can explain the decline for the microbrewery. – In recent years, we have seen that people are more aware of health and well-being, which has led to a reduction in alcohol consumption in general. This also affects small-scale beer, he believes. Andreassen says that the big breweries have run campaigns, and that small-scale breweries are struggling to compete against them. In addition, many microbreweries are struggling with the after-effects of the pandemic, as many of the pubs that sold their beer were closed. – Finally, we have the economic factors. Increased costs for raw materials, production and distribution have squeezed the margins for small-scale breweries. Combined with the fact that consumers have become more cost-conscious, this has led to lower prices, according to the professor. Published 03.08.2024, at 17.15
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Strong drop in the sale of beer from microbreweries – news Vestland
