Mulled wine and Christmas markets go hand in hand in Germany. Nowhere does the hot spiced wine taste better than under the Advent lights. However, the cozy cliché is often just a facade. The business is tough, reports Matthias Stelzig.
Gerstacker
Germany loves the Christmas market. Statistically, by mid-November, every third adult has enjoyed a cup of mulled wine there. By Christmas, it will even be 80 percent. About 84 percent go to the city centers to buy their gifts. In other words: The cup of mulled wine is almost as important to them as the gifts for their loved ones.
44 percent of all Germans like mulled wine. At the Christmas markets, two-thirds of the visitors drink it, of whom 78 percent consider the 200 to 250 calories per cup as not very relevant. The 0.25 per mille alcohol per cup is also unproblematic for them. It is indeed Christmas.
In 2024, one pays an average of just over four euros for 0.2 liters of mulled wine. In larger cities like Berlin, Hamburg, or Cologne, it quickly becomes five euros, and at the Christkindlmarkt at Marienplatz in Munich, it can even be six. At the Sofitel Munich Bayerpost hotel, they also like to serve a hearty mug of mulled wine with Perrier-Jouët champagne for 18 euros.
But even at the base level, it is becoming increasingly expensive. In many cities, prices have risen again by 50 cents per cup. However, only a few expensive ingredients are in the hot drink.
Those who do not want to be upset about this must queue in the second row of the approximately 5,000 German Christmas markets. Smaller cities like Braunschweig or Mannheim have moderate prices. Notorious Christmas market tourists are also well catered for in the Ruhr area. In Bochum, Essen, and Dortmund, the mulled wine costs only three to 3.50 euros this time.
Mega price breakers are the mulled wine stands in the parking lots of the discount store Aldi in Munich, Frankfurt, Cologne, and Stuttgart. There, the cup is available on certain days for just one euro.
The man at the kettle offers a product based on the same basic recipe that has been used for years. Production begins in spring. Unless there are days of heavy rain in December, sales for the winter are secured. More and more often even after Christmas: Now many visitors not only have the stress behind them but also money in their pockets. Sounds fantastic for the stall operators. But the providers complain: About rising costs for raw materials, energy, and personnel. "Everything is significantly more expensive than before the various crises in the world," summarizes Christian Eiserloh, sales manager of the wine and sparkling wine cellar Josef Drathen.
Before the war, Ukrainians supplied many millions of empty bottles worldwide. Today, the factories are bombed. German and European suppliers have compensated for the high price increases for glass. "About 35 percent more," calculates Alexandra Demuth, managing director and great-granddaughter of the founder Klaus Demuth, "the sugar price even rose by almost 80 percent in the meantime." Large parts of the base wines come very cheaply from Spain. Due to the relatively small harvest, prices have also risen there. Further conflicts, such as the Gaza war, have indirect effects. Even labels, capsules, and some other items have become more expensive. Especially energy: Electricity prices have skyrocketed so much that on some Christmas markets, the lights go out early. The reason: The energy costs.
Production site of the mulled wine producer Gerstacker in Nuremberg
Gerstacker“Despite the increased minimum wage, personnel is also becoming more expensive and less,” explains Stefanie Gerstacker from the eponymous manufacturer. No one can explain why this is the case. Many people know their name from the supermarket: Gerstacker's market share of the approximately 40 million liters of mulled wine produced annually in Germany is between 80 and 90 percent. "Nuremberg mulled wine" has been produced since 1965 according to a strictly secret family recipe. And Stefanie Gerstacker emphasizes that her company is "also internationally number one.".
German mulled wine is indeed an export item, for example to Eastern Europe, Austria, Alsace, and Scandinavia. There, variations of punch like Gløgg, Vin brulé, or grzane wino are already known. So a German "gluhwein" at the Christmas market is also welcome. It can be found from the Arctic Circle to the Balkans, as well as in Asia, South America, and the USA. There, German Christmas markets are copied in all details – “German Gemütlichkeit” is a hit. The fact that some labels still look like they did 100 years ago is not a disadvantage. For people who hang plastic antlers in their living rooms, Fraktur script and gilded angels are also well received.
Ultimately, however, the export share is only about seven percent. The British, for example, love mulled wine and German-derived words like “kitsch.” Terms with “k” instead of “c” are considered cool here. The traditional “Frankfurt Christmas Market” in its partner city Birmingham attracts five million visitors every year. Germany's largest Christmas market at Cologne Cathedral, on the other hand, only attracts four million.
Manufacturers at home have enough to do. In the saturated market, providers are currently trying to stand out from the crowd with ever-new variants. Gerstacker has teamed up with the Sylt restaurateur Herbert Seckler. This is intended to transfer the cult factor of the Sylt Sansibar a bit to their own mulled wine.
On-site in Nuremberg, there is a cooperation with star chef Andree Köthe. The host at the restaurant “Essigbratlein” has become famous for his unusual aromatic cuisine. However, chili, kaffir limes, and smoky aromas favored by the master remained in the cupboard. There were concerns about scaring off customers. In addition, there are strict legal requirements for the mulled wine recipe in Nuremberg, especially for certain spices.
And there are further rules: According to the wine law, mulled wine is an "aromatized wine-based beverage" that is made exclusively from red, white, or rosé wine and sweetened and spiced. The addition of alcohol is prohibited, as is the addition of water or colorants. The existing alcohol content must be at least 7 vol.-% and less than 14.5 vol.-%. If "winemaker's mulled wine" is offered, producers must make it from their own grapes.
On the other hand, fruit mulled wine and punch are becoming increasingly popular. “Such winter drinks are currently experiencing double-digit growth rates,” says Klaus Heitlinger, managing director of the Association of German Fruit Wine and Fruit Sparkling Wine Industry. Since it is about the younger clientele, the appearance and taste are first optimized for Instagram: A little too flashy doesn’t hurt. “Almdudler Almspritz,” “Weinberg peach punch,” and the non-alcoholic “Valensina fruit mulled wine” are expected to develop into a lifeline in the declining alcohol business. In summer, spritz, Hugo & Co. achieve drastically higher sales. “We would like to take a bit of that into winter,” explains Demuth, pointing to his AI-generated cherry punch “Nano-Fizz.” Others offer “baked apple mulled wine,” “mulled gin,” and “banana split mulled wine.” With the current retro hype, it could soon also lead to punch and egg liqueur from the sixties.