COST OF OKTOBERFEST
German city resumes party after 2-year absence, but hike in prices flattens froth a little
MUNICH — Oktoberfest is back in Germany after two years of pandemic cancellations — the same bicep-challenging beer mugs, fat-dripping pork knuckles, pretzels the size of dinner plates, men in leather shorts and women in cleavagebaring traditional dresses.
But while brewers are more than glad to see the return of the Bavarian capital’s sudsy tourist centerpiece — which began Saturday — both they and visitors are under pressure from inflation in a way that could scarcely be imagined in 2019.
For one thing, the 2-pint mug of beer will cost $12.84 to $14.07 this year, which is an increase of about 15% compared with 2019, according to the official Oktoberfest homepage.
For Germany’s brewers, rising costs go much deeper than simply the price of a round at the festival’s long wooden benches.
They are facing higher prices all along their chain of production, from raw ingredients like barley and hops to finishing touches such as beer caps and packing material.
It’s a mirror of the inflation running across the economy: Sky-high natural gas prices caused by Russia’s war in Ukraine are boosting what businesses and consumers have to pay for energy, while recovering demand from the pandemic is making parts and raw materials hard to come by.
Brewing equipment is often fueled by natural gas, and prices for barley malt — or grain that has been allowed to germinate by moistening it — have more than doubled, to over $600 a ton. Glass bottles have risen by 80%, as glassmakers pay more for energy. Bottle caps are up 60%, and even glue for labels is in short supply.
“Prices for everything have changed significantly this year,” said Sebastian Utz, head technician at Munich’s historic Hofbraeu Brewery. “To brew beer you need a lot of energy ... and for refrigeration. And at the same time, we need raw materials — barley malt, hops — where procurement has increased in price.”
The costs of everything — cardboard, stainless steel for barrels, wood pallets, cleaning supplies to keep the brewing tanks spotless — have gone up.
Inflation hit an annual 7.9% in Germany in August. Rising consumer prices in Europe have been fueled above all by Russia restricting supplies of natural gas, driving prices through the roof.
In any case, Oktoberfest is a muchneeded boost for Munich’s hotels and food service industry.
Mayor Dieter Reiter downplayed concerns about such a big event, saying the spread of COVID-19 is “no longer the decisive factor.”
Some 487 beer breweries, restaurants, fish and meat grills, wine vendors and others will serve revelers during Oktoberfest, and opening hours will be even longer than in the past, with the first beer tents opening at 9 a.m. and closing at 10:30 p.m.
Before COVID-19, 6 million people attended annually, many of them dressed in Bavarian garb — women in dirndl dresses; men in lederhosen, or knee-length leather trousers.
Oktoberfest, first held in 1810 in honor of the marriage of Crown Prince Ludwig of Bavaria to Princess Therese, has been canceled dozens of times during its more than 200-year history due to wars and pandemics.