Global Alcohol Slump Continues as 400-Year-Old German Brewery Files for Bankruptcy

(Photo: Pexels/Frank Schrader)

One of Germany’s oldest breweries has filed for bankruptcy after nearly four centuries in business, according to multiple reports. The brewery, founded in 1627, reportedly blamed a combination of falling beer consumption and rising operating costs.

Hofbrauhaus Wolters has entered self-administration insolvency proceedings as it seeks to restructure its business while continuing normal operations. The company said employees will remain on staff during the process.

According to the Braunschweiger Zeitung, the brewery cited declining beer sales and sharply higher production costs, particularly energy expenses, as key factors behind the filing. The Braunschweiger Zeitung also reported that the brewery’s owner as of 2020, a German bank called Volksbank Brawo, had previously injected capital into the brewery over the past few years to keep it afloat but more recently declined to provide a new credit line, asserting that throwing money at the problem wouldn’t fix the underlying structural issues.

Germany’s beer market has been under pressure in recent years, with national beer consumption falling to a record low in 2025. Brewers across the country have faced higher utility bills, weaker consumer demand and broader economic challenges.

As part of its restructuring, Hofbrauhaus Wolters plans to shift more of its focus toward non-alcoholic beverages rather than relying primarily on traditional beer production.

The brewery’s bankruptcy comes amid broader economic headwinds in Germany. The country’s economy has struggled with sluggish growth following consecutive contractions in 2023 and 2024, while manufacturers across multiple industries have grappled with elevated energy costs.

Founded in the city of Braunschweig, Hofbrauhaus Wolters is among Germany’s oldest continuously operating breweries. Its restructuring marks another sign of the challenges facing traditional brewers as changing consumer preferences and rising costs reshape Europe’s beer industry.