Dutch beer sales fall amid government taxes and bad weather, with non-alcoholic beer hit hardest
25 Jul 2024 --- Dutch beer sales have fallen dramatically in the first half of 2024, with non-alcoholic beer taking the biggest hit with a 9.4% decrease, according to Dutch Brewers association, Nederlandse Brouwers.
The overall 5.1% decline in beer sales is due to the 8.4% increase in excise duty on alcoholic beer and an almost 200% increase in consumption tax for non-alcoholic beer, pushing prices up further. The association says that sales for Pils and special beer were down by 4.4% and 4.6%, respectively.
People also drank less due to the poor weather, which led to fewer barbeques and pub garden drinking, it says, adding that The UEFA European Football Championship would typically lead to an increase in sales, but it did not see the expected surge this year.
This, coupled with beer drinkers getting their alcoholic and non-alcoholic beverages from across the border in neighboring countries like Belgium or Germany, contributed to disappointing sales.
Decline in non-alcoholic beer sales
Nederlandse Brouwers is concerned about the drastic drop in non-alcoholic beer consumption in particular and is calling on the government to scrap the tax to support the industry. Between 2010 and 2023, sales of non-alcoholic beer increased by more than 500% in the Netherlands. The category continued to thrive even when the beer market was struggling, it shares.
The Dutch government imposed a 200% increase in consumption tax for non-alcoholic beer.
A spokesperson for the association tells Food Ingredients First that they don’t think the poor sales performance of non-alcoholic beer is linked to saturation in the market. The association outlines that one in 14 beers is non-alcoholic and expects this to go to one in ten beers within a few years.
“However, what does not help is that the government has made alcohol-free beer more expensive. A wrong measure also from the point of view of encouraging responsible beer consumption and prevention,” they say.
“We hope the new government realizes that the tax increase now implemented is far too steep. There are several ways to do something about it. From exempting alcohol-free from the consumption tax, introducing a 0% rate for alcohol-free to choosing a scenario where the rate will be limited.”
Optimistic for the future
On January 1, the Dutch government increased consumption tax on non-alcoholic drinks from €8.83 (US$9.6) per hectoliter to €26.13 (US$28.4) per hectoliter. The consumption tax is the same for all beverages, regardless of sugar content. Mineral water falls outside of these tax duties.
Despite the disappointing start to the year, Fred Teevan, chairman of Nederlandse Brouwers, says he is hopeful for a better performance in the latter part of 2024.
“Now that the holiday season has arrived, we hope people will go to the terrace or beach more often to drink a beer together. Or enjoy the many beautiful beers brewed by Dutch brewers during the BBQ. It would be nice if we finally had a longer period of sunny weather. In any case, breweries are ready to respond to a beautiful summer,” he says.
Non-alcoholic beverages have become popular in recent years, thanks to consumers seeking healthier alternatives to traditional beers. Earlier this month the biggest non-alcoholic beer brand in the US, Athletic Brewing, secured US$50 million in equity financing, highlighting the category’s traction in the beverage industry.
By Sade Laja
