As many as six out of 10 beers consumed in Austria come from major international companies. Austrian private breweries believe it is high time to set an example. From now on, a seal of origin will make it clear who is behind a beer.
Seal of origin creates transparency
"Österreichische Privatbrauerei -100% unabhängig" (Austrian private breweries – 100% independent) is what is embossed on the newly created seal that now adorns the bottles, cans and packaging of the 10 private breweries that have joined forces to form the "Unabhängige Privatbrauereien Österreichs" (Independent Breweries of Austria) association. These are: Ottakringer Brauerei (Vienna), Stiegl brewery in Salzburg, Braucommune in Freistadt (Upper Austria), Hirter brewery (Carinthia), Mohren brewery (Vorarlberg), Murauer brewery (Styria), Schloss Eggenberg brewery (Upper Austria), Trumer brewery (Salzburg), Schrems (Lower Austria) and Zwettl (Lower Austria).
Informed beer connoisseurs
Austria is a country with a long, independent beer tradition. But today the Austrian beer market is divided. Around two thirds of beers are dominated by a major international group. The colourful scene of regional private breweries only accounts for around a third. The independent private breweries therefore see the originality of the Austrian brewing tradition as being jeopardised. Ultimately, however, the decision lies with beer connoisseurs. They have the choice – provided they have transparent information. This is provided by the seal of origin. Consumers can recognise from a glance at a shelf whether they are buying a product from an international corporation or a beer from an Austrian private brewery that has retained its independence. Consumers are becoming increasingly critical. In their search for the genuine and authentic, they need the right information when shopping – clear, unambiguous and comprehensible.
"We want to set an example for our beer. We want to strengthen Austrian private breweries that do not allow themselves to be taken over by large corporations," says Sigi Menz, member of the Ottakringer Brewery Supervisory Board, explaining his company's commitment.
The new seal is intended to provide information and transparency. Private breweries that use the new seal are:
- 100 % self-determining. Economically and financially independent. There are no links with major international corporations.
- 100 % in Austrian hands. The private breweries themselves and their beneficial owners are based in Austria and pay all taxes in Austria. They therefore make a significant contribution to the country's value creation.
- 100 % genuine and authentic. These private breweries have existed for centuries and ensure Austrian beer diversity is preserved.
The seal thus recognises companies that are one hundred percent Austrian-owned. Thus, they contribute to the common good of the country and make a fair contribution to education, healthcare, infrastructure and other public sector services with their taxes and levies. All Austrians benefit from the taxes paid by private breweries.
"With the seal, we want to make people in our country aware of the beer from private breweries," explains Ewald Pöschko, Managing Director of Braucommune in Freistadt and Chairman of the new association. "Our message is that we are not dependent on large international corporations but generate all of our added value domestically and pay all of our taxes here too."
Market concentration and diversity
With their initiative, the ‘Independent Breweries of Austria’ want to promote the diversity of genuine Austrian beer culture. The 10 private breweries are each based in different Austrian regions, from Dornbirn in the westernmost state of Vorarlberg to Vienna, where they cultivate authentic regional traditions. They are a guarantee for the traditional diversity of beer in Austria and thus provide the answer to the advance of the globalised standardised taste.
The initiative of the 10 private breweries was triggered by distortions in the domestic beer market, which have been observed with concern by medium-sized private breweries for some time. Years of mergers and acquisitions have resulted in an Austrian beer market is now dominated by corporate structures. The pandemic has further exacerbated the situation. Beer consumption collapsed due to the months-long hospitality shutdown. The major international groups responded with fierce price wars in which private breweries were unable and unwilling to keep up. At the same time, however, the Covid pandemic also triggered a different development, namely a return to Austrian, authentic, regional and sustainable products.
"We have a paradoxical situation," says Stiegl owner Dr. Heinrich Dieter Kiener: "On the one hand, the beer scene in Austria, with around 300 small and microbreweries, has never been as dynamic as it is today. On the other hand, two thirds of the market is dominated by one type of large company."
The ‘Independent Breweries of Austria’
association is set to grow
With its aim of promoting authentic Austrian brewing culture, the new association has developed certain criteria. The most important are that the private brewery and its owners must be based in Austria and must not be under the influence of a foreign company. It must have been commercially active as a private brewery in Austria for three years and the brewery must actually exist – not just the brand name.
The size of the private brewery is irrelevant; even microbreweries are permitted, provided they fulfil the criteria.
The beers that currently bear this seal account for around 28% of the Austrian beer market (domestic output of eight million hectolitres in 2020). However, the initiative of these 10 private breweries is only the starting signal. The association wants to take on more members and one day unite as many of Austria's independent private breweries as possible under one roof.