There is no sign of bad news yet on the Instagram profile of the brewery "Leikeim." Just last Thursday, a post was published explaining the production of non-alcoholic beer. However, the „Leikeim“ brewery from Altenkunstadt in Upper Franconia (Lichtenfels district) is currently facing significant pressure.
According to Deutsche Presse-Agentur (dpa), the brewery has filed for insolvency under self-administration. Managing Director Andreas Leikeim stated that the brewery had run into a liquidity bottleneck "due to the significant negative sales and revenue developments in recent years."
The challenges in the German beer market have been significant for years, the statement continued. Beer consumption is declining, costs have increased, and the economic impact of the Corona pandemic has added further strain to the situation.
The self-administered insolvency procedure is a special form of insolvency law aimed at restructuring a company rather than liquidating it. In this process, management stays in office and oversees the companys recovery alongside a court-appointed supervisor.
In recent years, several attempts have been made to stop the negative trend. Among other measures, the company expanded its export business, invested in non-alcoholic products, and cut costs. However, none of this proved sufficient to permanently offset the financial burdens, the company said.
Brewery Altenkunstadt Andreas Leikeim GmbH & Co. KG has been operated as an independent family brewery from its headquarters in Altenkunstadt since 1887. Currently, around 100 people are employed there. Operations and production continue. As part of the self-administration proceedings, various restructuring options are currently being examined.
Beer consumption in Germany has been declining for years. At the same time, raw material prices are rising. This is putting many breweries under pressure.