Germans cheer cheap Christmas beer

Germans average a third of a litre of beer a day

Germany is awash with cheap beer, selling for as little as five euro cents (3p) a can, as shops rush to clear stocks ahead of a new environmental tax to encourage recycling.

"Germany foams over with joy!" the German top selling newspaper Bild declared.

"Everyone's buying cheap beer."

The new deposit system is designed to counter a trend towards non-reusable containers.

But retailers have warned there could be a beer shortage in January in one of the world's largest beer-guzzling countries.

Wine exempt

Germany is one of the world's leading beer producing and drinking nations, with about 1,200 breweries producing 53 million hectolitres a year.

Germans are also among the world's most eager recyclers and already pay deposits for many glass and plastic bottles.

The new charge on non-reusable cans and bottles - 25 euro cents for small and 50 euro cents for larger containers - is being introduced because recycling has fallen below the 72% minimum level set in 1997.

The new deposit will cover cans of beer, mineral water and soft drinks but not wine bottles.

Business complains

Empties will have to be returned to the place of purchase for a refund so shops are clearing out their stocks before the charge kicks in on 1 January.

Retailers claim they do not have enough space to store the returns.

Industry groups say they will face start-up costs of 1.4bn euros and running costs of about 1bn euros per year.

The drink makers, bottlers and retailers have launched a string of court cases against the law, but have been unsuccessful in challenging the new charge.