Zug breweries are defying the crisis

Non-alcoholic, no bottles, no pressure: how some Zug breweries are defying the gloomy mood in the beer market.
 

The second-largest beer producer in the canton, Einhorn Bräu, is closing its doors. This marks the disappearance of a Zug-based company that, just a few years ago, was considered the great hope of the Zug beer business. The public limited company filed for bankruptcy on the 8th July of this year. At the time, the Zentralplus news portal ran the headline: “A Zug brewery faces collapse due to money and the global situation.” The article reported that investors were hesitant to release the millions needed for necessary investments. And managing director Alfred Niklaus announced that he would soon provide more information about the future of the Einhorn Bräu brand.

Since then, there has been silence for almost two months. The brewery has not officially provided any information on its website or on social media channels. But if you search for Einhorn Bräu on Google Maps, you will find a clear message in red letters: “Permanently closed.” Whether and how former managing director Alfred Niklaus will continue is still open. A request for information from the Zuger Zeitung newspaper remained unanswered.

One thing is certain: after initially being buoyed by the economic upturn, the beer market has now been in a persistent slump for some years. New breweries were springing up like mushrooms from 2014 onwards, but the boom has noticeably slowed down since 2022. Anf the canton of Zug has not been spared : just last year, the Zuger Zeitung newspaper reported on the closure of the Bachweg Brewery in Zug. Stefan Wigger, co-owner of a brewery, said at the time: ‘Everything became more expensive. Electricity costs twice as much, and the price of bottles has risen by 40%. That blows any calculation out of the water.’ Added to this are higher raw material and energy costs, as well as depressed consumer sentiment as a result of wars and inflation.

How are the remaining breweries in Zug faring? And how are they countering the declining appetite for beer? The Zuger Zeitung newspaper asked them. Among those who responded were the largest brewery, Brauerei Baar, and the microbreweries Hopfetopf and Rütibräu.

Stable despite rising costs
The Brauerei Baar (Baar brewery), by far the largest in the canton, is said to be feeling the effects of rising prices and falling demand, just like its competitors. ‘Our economic situation is solid, even though the general conditions remain challenging,’ writes managing director Martin Uster. In addition to malt becoming more expensive, glass, labels, CO₂ and energy are also having a significantly greater impact on costs. Added to this are higher wages, transport costs and growing expenditure on IT and security.

The Baar brewery has been particularly affected by customer reluctance in the catering industry. ‘At the same time, people are increasingly turning to non-alcoholic alternatives,’ writes Martin Uster. Non-alcoholic beer already accounts for 7% of sales, and this figure is set to rise to 10% next year. ‘In the long term, every fourth beer could be non-alcoholic.’

The Baar brewery is also restructuring its sales operations. It now operates three of its own ‘Braui Märkte’ in Baar, Steinhausen and Hünenberg. They not only sell beer, but also mineral water, wine and spirits. At the same time, the brewery is investing in new equipment and a more sustainable energy supply.

Two craft beer varieties from the Rütibräu brewery                           Photo: zvg/ Rütibräu
Fermentation cellar at the Baar brewery                 Photo: zvg/Christian Herbert Hildebrand
Martin Uster is the managing director of the Baar brewery            Photo: zvg
Taproom at the Hopfetopf brewery                          Photo: zvg/ Yves Schaltegger

Full-time operation is not worthwhile
The situation is quite different for small breweries in the canton. One example is Hopfetopf, which was founded in Cham in 2010 by Yves Schaltegger. From last year, he has been running the brewery in the Chäsimatt district of Rotkreuz, without employees and alongside his actual job. He himself is convinced that the model would not be viable as a main source of income. Production is too expensive and the margins too small.

The move has opened up new opportunities, however. Hopfetopf now operates a small taproom, which is open every Saturday. There, guests can sample the beer directly on site. The larger premises also allow for increased production. Special editions with individually designed labels are also available, for example for birthdays. He is also investigating whether other beverages can be produced on the same equipment in the future, but does not wish to reveal any further details at this time.

He sees little sign of consumer restraint. The brewery has grown recently. In any case, the fun of brewing is the main thing for him. Hopfetopf also supplies friends and family celebrations. ‘Being able to serve your own beer at a friend's wedding is something special.’

A hobby business without financial pressure
The Brauerei Rütibräu (Rütibräu brewery) in Baar is even smaller. It has been run as a microbrewery by Pascal Albisser and two colleagues since 2015: it’s officially registered, but exclusively as a hobby. ‘We can't assess our economic situation, because we don't have to make a living from it,’ he says.

Sales are almost exclusively local. Due to the small brewing volumes, raw material prices are less significant than for larger producers. Pascal Albisser adds: ‘We feel the price increases most in the cost of bottles, whereas it’s the delivery costs that are more significant for hops, malt and yeast.’

Investments remain manageable. The beer served at events is tapped directly from dispensing systems and reusable containers, in order to save on bottles. And he doesn’t sense any reluctance among consumers. ‘On the contrary, people are curious about us, because we’re a small local brewery in the craft beer sector.’ This is reinforced by the fact that the beer varieties change regularly and are therefore not always available.

Here, too, local roots are essential: ‘We’ve made a name for ourselves locally and gained regular customers,’ says Pascal Albisser. ‘As part of the  micro sector with small quantities, we are no competition for the big breweries.’

The Zug beer market is following an all too familiar pattern: large companies make use of their investment power and expand their position, while micro-enterprises only survive because they don’t have to generate profits and are locally anchored. For everyone else, things are getting increasingly tight.