Dividends and Bottle shortage has German brewers urging public to bring back empties

In the summer, more drinks including beer are consumer than during the winter and everyone knows that fact. The reasons include heat but also in normal times there are many more events where people gather and enjoy a beer or two. If you think images about Germany, you likely think about Germans drinking beer. The breweries in which they are many, brew beer to meet the demand and there are roughly 1,500 breweries and they have 4 billion returnable glass bottles in circulation – about 48 for every man, woman and child.

In an article by Melissa Eddy of the New York Times News Service, there are many problems operating a German brewery at the moment and one of them having enough glass bottles for the beer. German is facing a severe shortage of beer bottles.

The good news is most of German beer bottles are recycled glass and that is good, but people are not returning their empties. It is a big of hassle for people to bring back the empties so many people store them in their homes until they need the space or want the spare cash.

The article focused on Germany’s Klosterbrauerei Neuzelle, a small brewery where 80% of the beer sold is using glass bottles. The company has seen natural gas prices increase 400%, electricity bill up 300%, the barley bill is up and the war between Russia and Ukraine is not helping prices fall. The business was founded in 1589, which means it has survived many difficult times and the present owners from 1993 believe it will continue to survive.

Solutions for the bottle shortage including ads in newspapers, considering increasing the deposit, and increasing prices. Similar to many industries, the supply system has seen prices increase from the wooden pallet to salaries to fuel costs. The largest brewery in Germany – Radeberger Group which makes Radeberger and Schofferhofer beer has increased prices, but it more difficult for the smaller breweries.

One of the creative measures by the Klosterbrauerei Neuzelle was to have its most popular beer – Schwarzer Abt or Black Abott bottle blessed by the Pope and then dip the bottle in every batch made.

Linking to dividend paying stocks, in every country there are some stable companies who have made profits for generations. There will always be challenges, but it is possible to make profits and pay dividends for generations. When you are investing, look to have some of these companies in your portfolio to ensure the stock prices are maintain and go higher every year and you receive a dividend for you good decision.

There are more questions than answers, till the next time – to raising questions.

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