Historic German Brewery Ceases Operations After 167 Years Amidst Intense Market Competition

The landscape of the German beer market is undergoing significant changes as the renowned Mühlen Kölsch brewery announces its closure after 167 years of operation. In a strategic move, the brewery will cease production and transfer its popular Kölsch brand to the rival Gaffel brewery, highlighting the ongoing consolidation in the industry.

Located in Cologne, the brewery, known for its traditional Kölsch beer, will focus its future efforts on the gastronomy sector. According to the brewery's management, approximately 60% of its revenue is currently generated from its restaurant and bar operations, which are thriving in the heart of the city. This shift comes as a response to the challenging market conditions that have made it difficult for smaller breweries to compete.

Heinrich Philipp Becker, managing partner of Gaffel, expressed optimism regarding the acquisition, stating that the partnership will leverage the strengths of two established family-run businesses. Both breweries plan to collaborate further on organizing events and optimizing their logistics and purchasing processes. The transition is scheduled to take effect on September 1 of this year.

The German beer market has faced numerous challenges in recent years, particularly following the outbreak of the conflict in Ukraine, which has led to rising operational costs. The CEO of Mühlen Kölsch, Michael Rosenbaum, noted that the financial landscape has shifted dramatically since 2022, creating a highly competitive environment where price wars are commonplace. As smaller breweries struggle to maintain their market share, the consolidation trend appears to be accelerating.

Data reveals a concerning decline in beer consumption across Germany. In the first two months of 2025, beer sales plummeted by over 570,000 hectoliters compared to the previous year, translating to a staggering loss of nearly 115 million half-liter glasses. Industry experts suggest that unless a significant turnaround occurs, such as a particularly favorable summer season, the outlook for the year remains bleak.

This development signifies not only the end of an era for the Mühlen Kölsch brewery but also underscores the broader challenges facing the beer industry in Germany. As consumer preferences evolve and economic pressures mount, the future of many traditional breweries hangs in the balance.