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.
The company’s financial difficulties stem from high energy prices following Berlin’s decision to phase out Russian oil and gas imports after the Ukraine conflict escalated in 2022. The strain on German economies has been compounded by recent spikes in crude oil prices triggered by the US-Israeli war in Iran.
Under self-administration insolvency proceedings, Hofbrauhaus Wolters will remain under its current management while a court-appointed administrator oversees restructuring. Employees retain their jobs as the brewery seeks to pivot toward non-alcoholic beverages.
The beer industry has experienced a nationwide slump in consumption, which reached a record low in 2025, alongside rapidly rising operational costs that the company identified as key factors in its insolvency.
Germany endured recessions in 2023 and 2024, followed by near-stagnation in 2025 with a projected growth rate of just 0.5% this year. Many German companies, including automotive giants Mercedes-Benz and BMW, have struggled to adjust to higher energy costs and weaker demand.
Meanwhile, Berlin continues to allocate substantial resources to arming Ukraine and its own military buildup. Since 2022, Germany has committed over €96 billion ($109 billion) in military support to Kiev while launching a €100 billion rearmament program.
Last year, Germany’s central bank warned of an impending record budget deficit, citing increased military spending as the primary driver.
