Industry stakeholders in Luxembourg, including the Federation of Hotels, Restaurants, and Bars (HORESCA), beverage distributor Ruppert, and the Simon Brewery, are calling for reforms to the country's alcohol licencing system.
During a roundtable discussion hosted by RTL Radio on Saturday, industry leaders highlighted the decline of small bars, particularly in rural areas, and emphasised the need for regulatory updates. The panel featured Betty Fontaine, managing director of Simon Brewery; Steve Martellini, director of HORESCA; and Paul Ruppert, head of the eponymous beverage distributor.
Martellini criticised the current system, noting that it is outdated to tie alcohol-serving licences to specific buildings or municipalities. Consequently, HORESCA is advocating for a comprehensive reform of outlet licencing laws.
Ruppert addressed the issue of market monopolies, pointing out that the majority of these licences are held by two large national breweries. While he acknowledged that the breweries' historical acquisition of these contracts was "quite legitimate", he argued that it has created a "protected market" that is "not healthy for everybody." Ruppert maintained that limiting competition in such a restricted market disadvantages other industry players.
The panellists also expressed concern over the shrinking number of rural bars. Fontaine warned that this trend negatively impacts social behaviour, leading to increased isolation as people spend more time "rotting at home."
Beyond licencing, the discussion touched on shifting consumer habits and a general decline in alcohol consumption. In response, Simon Brewery launched an alcohol-free beer line in 2019. Fontaine noted that relying solely on traditional alcoholic beer – a shrinking market – is no longer a viable long-term strategy. To adapt, the company had to "become more creative" and meet current consumer demands. She emphasised that while the demand for non-alcoholic beverages exists, the products "just have to be good."
Despite the decline of traditional bars and broader economic challenges, the overall number of HORESCA businesses has grown by 14% compared to pre-pandemic levels, according to Martellini. He attributed this growth primarily to an increase in the number of restaurants. Additionally, Martellini noted a rising supply and demand for fast-food outlets, observing that younger consumers increasingly prefer these establishments over traditional eateries.
