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Baden-Württemberg Brewers Secure Two-Stage 2.8% Pay Raise as Industry Weighs Beer Prices

The deal lifts labor costs for 1,500 brewery workers under a 26-month contract leaving breweries free to adjust prices in a market facing subdued demand.

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Overview

  • The NGG and Baden-Württembergischer Brauerbund agreed on a 26-month contract with 2.8% wage hikes in August 2025 and May 2026 for about 1,500 brewery employees.
  • Hans-Walter Janitz of the Brauerbund warns the pay increase will compound labor expenses, which already exceed 40% of total costs at many regional breweries.
  • Each brewery retains authority over price adjustments, but companies may hesitate to raise beer prices amid cooling consumer demand.
  • Major brewers Krombacher and Veltins have announced wholesale price increases for autumn 2025 without detailing the exact scale of their hikes.
  • The regional agreement follows NGG warning strikes in northern and eastern Germany and underscores broader challenges from high energy and raw-material costs across the sector.