AGP Executive Report

German Policy Watch: Germany proposes a 20% spirits tax increase, a move that could reshape pricing and demand across the alcohol market. Industry & Innovation: IMCD opens a new Food & Nutrition US Technical Hub in New Jersey, adding application labs (including a bakery lab) to speed up co-development for food, beverage and nutraceutical formulations. Food & Drink Markets: Refresco agrees to acquire insolvent Rhenser Mineralbrunnen, signaling continued consolidation in German bottled water. Coffee Spotlight: Colombia’s Congress declares coffee its national beverage, aiming to boost domestic consumption and support coffee-growing families. Sustainability & Compliance: The EU Packaging and Packaging Waste Regulation enters into force on Aug 12, with compliance milestones phasing in through 2040. Retail & Beverages: Nestlé confirms recipe changes to KitKat across Europe, including a more distinct hazelnut taste, rolling out from Sept 2027. Health & Drinks: A 10-year study links both regular and diet sodas to higher fatty liver disease risk, while replacing them with water lowers risk.

Germany-focused food & drink: Nestlé is changing the classic KitKat recipe across Europe, adding a “third level” for a more complex taste and boosting hazelnut notes ahead of a Europe-wide rollout scheduled for September 2027. Beverage & health: A 10-year UK Biobank study links both regular and diet sodas to higher fatty liver disease risk, while replacing them with water lowered risk. Coffee in the spotlight: Colombia has declared coffee its national beverage, aiming to boost domestic consumption and back coffee-growing families. Retail drinks: Circle K and AriZona Beverages launch a limited-edition “AriZona Sparkling Patriotic Punch” for the US’s 250th birthday. Food safety (Switzerland): Switzerland reports rising foodborne illness cases in 2025, with campylobacteriosis and salmonellosis leading; authorities stress proper cooking and handling. Industry expansion: IMCD opens a new Food & Nutrition US Technical Hub in New Jersey, including a Bakery Lab for co-developing formulations for bakery, beverage, confectionery, dairy and savoury. Market watch: Single-cell protein is forecast to grow from $12.1bn (2026) to $21.4bn by 2033.

Germany Policy Watch: Drinks companies are pushing back against Germany’s proposed sugar levy and a potential 20% spirits tax increase, arguing it could hit consumers and the wider beverage sector. Food Trade & Logistics: Taiwan shipped Irwin mangoes and black-leaf lychees to the U.K. via a cold-chain route transiting through Frankfurt, marking the first official export of the fruits to the U.K. this year. Foodservice & Consumer Prices: World Cup fans are complaining about steep beer and concession prices, with international visitors comparing costs to typical European levels. Industry Growth Signals: Specialty enzymes demand is forecast to keep rising for food and beverage uses, while functional mushrooms and frozen yogurt markets are also projected to grow on wellness and indulgence trends. Retail Expansion: A report on the Czech market highlights new food-and-beverage brand entries, including German café and restaurant concepts. Supply Chain/Production Spotlight: A roundup profiles Chinese charcoal manufacturers positioning for more sustainable, energy-efficient production for global barbecue and industrial demand.

German Rail Safety: Deutsche Bahn will issue bodycams to 2,000 staff after a fatal attack on a conductor in February, including conductors and restaurant car teams, with staff deciding whether to attach them. Retail Expansion (Czech, incl. German brands): Cushman & Wakefield says 16 new international brands entered the Czech market in H1 2026; food and beverage led with seven openings, including German restaurant Home of Dumplings and other café and sushi newcomers. Beverage Business (Germany policy pressure): Multiple drinks companies are pushing back against Germany’s proposed sugar levy, arguing it could hurt the sector. Water & M&A: Refresco has agreed to acquire insolvent Rhenser Mineralbrunnen, expanding its footprint in German mineral water. Spirits Tax: Germany proposes a 20% spirits tax increase, adding pressure to alcohol pricing and demand. Food & Drink Culture (global, but relevant): A halal cola brand, Salaam Cola, has launched officially in Pakistan and says it’s expanding across markets including Germany.

German Retail Circularity: Start-up Reo has expanded its digital return platform for branded cosmetic and personal-care packaging into eight Kaufland branches in Heilbronn, building on a Munich pilot and using existing deposit machines for €0.29 cashback per returned package. German Policy & Drinks Industry: Germany’s proposed 20% spirits tax increase is drawing pushback, with drinks companies hitting out at the plan and also reacting to sugar levy proposals. Wine Trade (Germany-Georgia): German wine professionals visited Georgia with support from the National Wine Agency of Georgia and ff.k Public Relations, followed by Georgian wine tastings in Cologne, Berlin and other German cities pairing the wines with local cuisine to boost export momentum. Foodservice & Markets: Refresco has agreed to acquire insolvent Rhenser Mineralbrunnen, while a separate report flags ongoing restaurant pressure and closures in Houston—useful context for operators watching cost and labour headwinds. Industry Research (Food-Adjacent): Multiple market-research releases cover coconut butter growth and industrial steam/sterile processing equipment demand, including clean steam separators and steam trap monitoring.

Spirits Tax Shock: Germany’s Finance Ministry has proposed a 20% spirits tax hike from 2027, lifting pure alcohol tax from €13.03 to €15.64 per litre and adding about €1 to a standard 700ml vodka bottle—part of a wider alcohol and tobacco revenue push. Industry Pushback: More than 300 drinks companies have signed an open letter opposing a proposed German sugar levy, warning it would hit beverage firms and consumers already squeezed by costs. Deal Watch: Refresco has agreed to acquire insolvent Rhenser Mineralbrunnen, securing production capacity and brands (Rhenser, Silvetta, WasserGlück) after Rhenser entered preliminary insolvency in March; closing is expected on 1 August. Beverage Market Shift: New market studies point to Germany’s consumers moving away from sugar and full-strength formats toward ready-to-drink, with RTD per adult projected to rise sharply by 2031. Hospitality Context: The UK’s VAT debate is reigniting calls for a cut to support struggling pubs and restaurants—an angle that will resonate with Germany’s own tax and levy discussions.

Hospitality Pressure: A UK survey says 23% of pubs, bars and restaurants are losing money, up from 15% three months ago, as VAT, energy and labour costs squeeze margins. Heatwave Fallout: Europe’s record-breaking heat is hitting food and drink operations too—Germany saw 41.7°C, while Paris restricted public alcohol and Barcelona expanded cooling shelters. KFC Operator Moves: Collins Foods says it’s extending KFC trading hours and adding breakfast to drive growth after Europe underperformed, while also warning bird flu has pushed up poultry prices in its European operations. Supply Chain Watch: Collins Foods says it has no local chicken cases yet and claims strong contingency plans, with biosecurity measures in place across suppliers. German Food Angle via Sports Culture: World Cup crowds are still shaping restaurant trade abroad, with Germany fans and match-day viewing driving demand for food and drinks in host cities.

German Wine Push: Wines of Germany has opened sign-ups for its 31 Days of German Wine campaign (15th year), aiming to boost Riesling and other styles via UK independent wine merchants, bars and restaurants, with up to £75 for launch events and prizes for the best listings. Retail & Alcohol: New research says supermarket own-label alcohol is still expanding across Europe, with private label now holding major shares in food and beverage aisles in multiple countries including Germany. Heat & Hospitality: Europe’s heatwave is driving demand for cooling tech and changing consumer habits, while public alcohol restrictions in places like Paris show how extreme weather is reshaping how people drink out. Food Safety Recall: A product recall warns of possible metal fragments in items sold in Germany. Packaging Industry: Bengang Machinery says it has passed 4,800 packaging projects worldwide, highlighting turnkey filling and packaging demand across food and other sectors. Market Watch: Reports project strong growth for alternative sweeteners, plant-based milk and algae-based products—signals of continued investment in “health” and sustainability-led categories.

Food Logistics & Investment: Thermotraffic, a Japanese-owned temperature-controlled logistics firm, is pushing ahead with a £60m UK headquarters in Nottinghamshire near Newark, but Nottinghamshire County Council is objecting over traffic volume, road blockage risk, pedestrian safety, and parking needs. Wine & Retail Trends: A new report forecasts the global mezzanine floor market rising from US$8.4bn (2026) to US$13.7bn by 2033, driven by e-commerce and warehouse expansion—relevant for food and beverage storage and distribution capacity. Hospitality & Travel Demand: Trip.com says family travel is surging globally, with bookings for families with children up to 12 more than doubling in key markets including Germany, as travelers prioritize family-friendly hotels and nearby dining. Local Food Culture: A new bakery in Salt Lake City is drawing croissant fans, with laminated pastries selling out quickly—another sign of continued demand for premium, craft breakfast formats.

Heatwave & Public Health: Europe’s deadly heatwave is pushing services to the limit, with Germany issuing red alerts and record temperatures reported as hospitals struggle and cooling measures intensify. Alcohol Rules in Focus: Paris has moved to ban public alcohol consumption during the heatwave, highlighting how drink culture is being reshaped by extreme weather. Food & Hospitality Under Pressure: A report on rising restaurant costs points to higher food prices and energy costs squeezing margins, with hospitality liquidations rising sharply. German Food Culture Abroad: A German soccer fan says U.S. food surprised him—calling out Portillo’s hot dogs and Chicago deep-dish pizza—showing how World Cup travel is boosting interest in American food. Trade & Market Access: Ghana opened a Ghana Trade House in Philadelphia to expand exports and support businesses, adding to its overseas trade network. Food Safety/Operations: Inspectors have been trained to check HACCP-certified facilities, underlining ongoing compliance work in food production. Hospitality & Tourism Capacity: Palma’s cruise limits are being tightened under a new agreement, aiming to reduce overcrowding impacts from 2027.

Heatwave & Alcohol Rules: Paris has temporarily banned public alcohol consumption and takeaway liquor sales as hospitals face a surge in heat-related cases, warning that alcohol worsens dehydration and disrupts temperature control. Food Labeling & Welfare: Switzerland’s new law (effective July 1, 2025) requires labels for meat, dairy, eggs and foie gras when animals were subjected to certain painful procedures without anesthesia, adding welfare detail beyond nutrition facts. Hospitality Cost Pressure: New Zealand’s hospitality sector is seeing rising liquidations, with food price hikes—especially meat—pushing restaurants toward higher menu prices and financial stress. German Travel & Lounges: American Express Germany is cutting Amex Centurion Lounge guest access to one person from July 8, 2026 (matching Priority Pass rules). Trade & Exports: Ghana’s GEPA opened a Ghana Trade House in Philadelphia to boost non-traditional exports and support market entry, adding to similar hubs in London and Kenya. Food Culture Abroad: A German soccer fan says U.S. food surprised him—highlighting Portillo’s hot dogs and Chicago-style pizza—showing how World Cup travel is driving appetite for American staples.

Food Prices & Restaurant Pressure: A report on rising hospitality costs points to food price spikes and energy costs as key drivers of restaurant distress, with meat and dairy among the biggest pressure points. Animal Welfare Labeling: Switzerland’s new rules require labels for certain painful procedures in meat, dairy, eggs and foie gras, pushing shoppers to look beyond nutrition facts. Food Safety Training (HACCP): Germany-backed training helped Moldova’s ANSA inspectors audit HACCP-certified facilities, including theoretical and practical sessions with German experts. Public Health & Alcohol in Heat: Paris temporarily banned public alcohol consumption and takeaway liquor sales during the heatwave, citing hospital strain and warnings that alcohol worsens dehydration. Travel Payments Warning: Holidaymakers are urged not to rely solely on cards abroad, as cash-only spots and extra fees can quickly add up. Trade & Exports (Ghana): GEPA opened a Ghana Trade House in Philadelphia to boost non-traditional exports and support market entry for Ghanaian firms. World Cup Food Culture: A German fan says U.S. food surprised him—highlighting American staples like hot dogs, deep-dish pizza and milkshakes. German Card Access Change: American Express Germany will cut Centurion Lounge guest access to one from July 8, 2026.

World Cup Economy & Hospitality: Bank of America data says World Cup card spending in the 16 host cities is up 6.3% year on year, with non-local visitors driving the biggest jump (+16.7%), boosting hotels, restaurants, transport and shopping. Stadium Food Price Shock: Multiple reports highlight sticker shock for food and drink at venues, with fans complaining about concession prices. German-Linked Fan Culture: A German player’s Yazidi/Kurdish heritage story (Deniz Undav) is drawing attention beyond football, while German fans in host cities are also being courted by local food and drink spots. Beer & Brewery Openings: In the US, Wild Beer Frontier Project opened in Boise with food trucks and live music, and Sockeye Brewing launched “Striker” Kölsch for AC Boise. Heatwave Alcohol Rules (France): Paris temporarily banned public drinking and restricted takeaway alcohol sales to ease hospital strain, showing how weather policy is hitting the drinks market.

Heatwave & alcohol rules: France’s Green party is pushing “climate holidays” (paid leave for heat risks) as record temperatures strain health services, while Paris has imposed temporary alcohol bans during the hottest hours to ease hospital pressure. Food & drink innovation in Germany: Beneo is promoting sugar-free confectionery concepts using Isomalt (including yuzu/matcha and caramel coffee candy ideas) plus dual-layer sugar-free gum formats. ProWein fizz watch: A ProWein Sparkling Report says Champagne sales keep sliding as consumers trade down, while Crémant hits new highs thanks to affordability and strong export growth. Retail finance: Gordon Brothers secured up to €160m in asset-based financing for Germany’s GALERIA to support its transformation plan. HoReCa & dining buzz: Readers’ polls crown Columbus favorites Bar Italia and Metsi’s, highlighting continued demand for elevated Italian dining. Travel & consumer habits: A study finds esports is becoming mainstream for Gen Z, with brand sponsorships and esports ads influencing purchases—relevant for food and beverage marketing.

Food & Drink Policy: Paris has introduced bans on public alcohol consumption and takeaway sales during the heatwave, while bars and restaurants remain exempt—an example of how extreme weather is reshaping hospitality rules across Europe. Hospitality Demand: Dutch leisure travel is forecast to soften in 2026 as costs rise, VAT on overnight stays bites, and labor expenses pressure hotels and holiday parks. Sustainability in Food Service: Lawrence’s sustainability board is weighing a styrofoam cup and food-container ban, citing microplastics and toxicity concerns—showing growing pressure on single-use packaging in the food sector. German Food Culture Angle: A new Halal German döner concept, Döner Haus Bayside, marked its one-year anniversary, highlighting how German-style döner continues to travel and localize abroad. Markets & Supply Chain: Separate research points to rapid growth in smart warehousing and logistics automation—signals that food and beverage supply chains may keep investing in faster, more automated fulfillment.

Airport & QSR Expansion: Casualfood has opened the first Slim Chickens outlet at Düsseldorf Airport (Terminal C, Gate C), adding freshly prepared hand-breaded chicken tenders and wings plus 11 dipping sauces, alongside wraps, salads and Southern sides—part of the brand’s push after its 2024 Berlin debut. Food & Drink Supply Chain: Guinness Ghana Breweries and Germany’s GIZ launched the INSPIRE Sorghum project to boost northern Ghana sorghum output for Malta Guinness, targeting 30,000 smallholder farmers and 150+ jobs, with 40,000–45,000 tonnes expected annually. Cybersecurity & Industry Risk: Europol’s Operation Endgame disrupted malware networks SocGholish, Amadey and StealC, freezing €47m in crypto and taking down servers/domains used to steal credentials—highlighting ongoing threats to food and beverage operators’ digital systems. Climate & Consumer Habits: With Europe facing record heat, research points to shifts toward chilled drinks and hydration, including stronger bottled water and sports drink demand. Rail Disruption: DB InfraGO investigated a GSM-R digital radio failure that halted Germany’s rail network for about 90 minutes, affecting freight and passenger operations. Food Safety: A multi-country Salmonella Bovismorbificans ST377 outbreak linked to alfalfa sprouted seeds has been reported across EU/EEA and the UK, prompting withdrawals and recalls.