Even for mineral water, consumers in Germany will probably soon dig deeper into your pocket duty. “I expect the price of a case of mineral water to rise by one euro soon,” said the president of the Association of German Mineral Springs (VDM), Karl Tack, of the German news agency. And even such an increase is not enough to cover the increase in costs. “Die gas and electricity prices explode hitting ore wells hard. Some companies are facing cost increases of two to three times the previous year’s profit,” Tack told the industry service “Beverage News”.
The current explosion in electricity and gas prices places an extremely heavy burden on mines, Tack said. Furthermore, important materials such as glass, PET or aluminum have become drastically more expensive. “All in all, the cost increases in some companies are approx three or four times as high like last year’s profit,” said the industry expert. Companies therefore had no choice but to Pass some of the costs on to retailers and consumers. Die price negotiations with the trade, however, they were still ongoing. And they are not easy.
“Companies will have to raise prices” – water is getting more expensive
The decline in people’s purchasing power has long been evident when buying bottled water, Tack said. “To save money, consumers buy more and more special offers, or switch to cheaper mineral waters. At the moment, this especially concerns providers in the middle price segment. Premium brands feel them reluctance to buy so far significantly less.” The demand for mineral water is still high. It’s even six to seven per cent above the previous year’s level.
According to the head of the association, however, there has been no sign of a change in the clientele from mineral water to tap water. “The business with sparkling water producers is also currently stagnant, or even down slightly.” According to the association, wells in Germany fill up every year 12 billion liters of mineral and medicinal water as well as spring mineral sodas. The association recently estimated the annual per capita consumption of still mineral water in Germany 122.7 litres.
Also interesting: Tap Water or Bottled Water: Which is Better?
