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 the recent spike in crude prices triggered by the US-Israeli war on 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.

Alongside a nationwide slump in beer consumption, which fell to a record low in 2025, the company cited rapidly rising operating costs as a key reason for its insolvency. According to the Braunschweiger Zeitung, skyrocketing energy prices have placed particular pressure on German breweries.

Germany endured recessions in 2023 and 2024, followed by near-stagnation in 2025, with growth forecast 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.

At the same time, 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, citing increased military spending as one of the main drivers.