Hofbrauhaus Wolters, one of Germany’s oldest breweries dating back to 1627, has filed for bankruptcy, citing soaring operating costs and a sharp decline in beer consumption.
Germany’s economy has faced mounting pressure from high energy prices since Berlin began phasing out Russian oil and gas imports following the escalation of the Ukraine conflict in 2022. The strain has been compounded by a recent spike in crude oil prices triggered by the US-Israeli war on Iran.
Under self-administration insolvency proceedings, Hofbrauhaus Wolters will remain under its current management while a court-appointed administrator oversees restructuring. Employees will retain their positions as the brewery pivots toward producing non-alcoholic beverages rather than traditional beer.
The company identified a nationwide slump in beer consumption—reaching a record low in 2025—as a key factor in its financial distress, alongside rapidly increasing operating costs driven by energy prices. Germany endured recessions in 2023 and 2024, followed by near-stagnation in 2025 with an economic growth forecast of just 0.5% this year. Automotive giants including Mercedes-Benz and BMW have struggled to adjust to higher energy costs and weaker demand.
Meanwhile, Berlin continues to devote substantial resources to arming Ukraine and expanding its military capabilities. Since 2022, Germany has committed more than €96 billion ($109 billion) in military support to Kiev while launching a €100 billion rearmament program for its own forces. Last year, Germany’s central bank warned that a record budget deficit was imminent, with increased military spending cited as the primary driver.
