Oktoberfest Now Has Its Culture War. It Isn’t About the Beer.

MUNICH—Oktoberfest is usually all about the beer. This year, it is about chicken.

A decision by the Paulaner festival tent to serve all-organic hens at its marquee venue is stoking a debate between advocates of a sustainable Oktoberfest against traditionalists wary of a “Woke Wiesn”—a play on the short form of the name of the Bavarian celebration.

“It’s an experiment,” said Arabella Schörghuber, who runs the Paulaner Festzelt. “It’s more expensive, but the quality is higher. We want to make sure that the animal has a good life. We’ll see what happens.”

On Saturday, she helped hand out the first beers from the middle of the giant festival tent after thousands of people counted down to the tapping of the first keg. Waiters each toting a dozen glasses with a liter of beer wove through the crowds as huge rotisserie ovens cooked hens in a side kitchen, five on each spit.

Andrea Koerner, 56 years old, comes to Oktoberfest each year and usually orders the chicken, the most popular festival food. Not this time. When she saw that an organic half hen cost 20.50 euros, the equivalent of $22, about 50% more than the nonorganic hens, she opted for pretzels and a cheese spread instead.

“We don’t know the taste because it costs too much to try,” Koerner said.

Other guests said the chicken was good and worth the price. “I don’t care at all,” said Jake Williams, a 32-year-old guest. “I guess it is good if people care about the chickens.”

The price hike is among other inflation-related markups. The cost of a liter—or “mass”—of beer in most big tents increased this year by 6% to €14.50, according to a survey done by the city. That is after prices rose sharply last year following Russia’s invasion of Ukraine. Oktoberfest was canceled in 2020 and 2021 because of the Covid-19 pandemic.

The menu shift follows a pressure campaign by a coalition of groups, demanding that the Bavarian festival of hearty food and enormous beers should turn into a vehicle promoting organic farming.

The activists held a public exhibition in the city’s central square showing a carousel of imitation bloody chicken heads to denounce industrial slaughtering. The group secured a meeting between activists, officials and Oktoberfest tent owners in the spring.

“There’s already a lot going on. But my perspective is from an organic local farming business, and there’s not enough,” said Susanne Kiehl, a board member of the Munich Food Council.

She and Anja Berger, an Oktoberfest official and a Green Party member, said the changes are important to meet the city’s goal of becoming climate-neutral by 2035.

In other matters, Berger’s party this year also secured four free water fountains on the festival grounds.

During a tour of the grounds last week, Mayor Dieter Reiter admired the new taps and joked of what might come next. “A free beer fountain!” he said. “I just haven’t found anyone who will do it yet.”

Activists have sought gastronomic mandates at the festival, but the city has not imposed them. An association of Munich’s innkeepers have pushed back at such rules, saying people should be allowed to live—and eat—as they see fit. “I don’t think anyone really wants a planned economy in which a small group decides what is good for the people and what is not,” said Thomas Geppert, head of the Bavarian Hotel and Restaurant Association.

Schörghuber, who is a vegetarian, said she received a mixed reaction to her chicken initiative from the other tents, with some concerned that they would be pressured to follow suit.

For many visitors, locals and overseas tourists, Oktoberfest is a freewheeling carnival—a chance to let loose and drink (often to excess) beer served by waitresses clad in revealing Dirndl dresses. Many guests also don the traditional Bavarian outfits and tie the ribbon of their aprons on a different side to indicate whether they are single or taken.

“It must stay a traditional volksfest, because otherwise it wouldn’t be attractive,” said Clemens Baumgärtner, an official who oversees the festival and a member of the conservative CSU. “If you talk about being woke on the other 340 days a year, nobody really listens to that. But if you talk about being woke on the Oktoberfest, you get lots of media attention.”

The first Oktoberfest was celebrated in 1810 to commemorate a royal marriage and build support for the budding Bavarian monarchy. It was so popular that it became an annual tradition, adding agricultural displays, vaudeville shows and eventually thrill rides. Despite its name, the festival now mostly takes place in September. Around seven million people are expected to visit the Theresienwiese grounds in Munich during an 18-day run that started Saturday.

“Wiesn will have to change as it has changed always over the decades,” said Lukas Bulka, who started working at an Oktoberfest tent as a teenager and now runs the city’s Beer and Oktoberfest Museum.

The festival already uses electricity generated from renewable sources, Baumgärtner said, and single-use dishes and utensils are banned.

An association of the 15 largest festival tents—which have seats for about 100,000 people—committed to becoming climate-neutral by 2028, mostly through projects that offset their energy use. Four tents, including the Paulaner venue, already meet the targets and built systems to recycle some wastewater.

But when it comes to farming practices, it isn’t feasible to rely on only organic hops and barley for the roughly seven million litres of beer that will be consumed, Schörghuber said. Hofbräu, one of the six Oktoberfest breweries, estimated that the production and transportation of festival beer in 2019 created 66 metric tons of carbon dioxide. Munich has an organic brewery, Haderner, but it doesn’t have one of the coveted slots at the festival.

Schörghuber said she focused on chicken because it is so sought after—the city estimated that around 500,000 chickens were consumed at Oktoberfest in 2019—and a change was feasible. She found a farm in Austria that raised the organic birds for this year’s festival and spent a year speaking with her cooking staff about what changes were needed to grill what are larger than conventional hens.

Kiehl said that while her group was happy with the Paulaner tent’s chicken change, it would be more difficult to convince the public that the brewers should be forced to tweak their recipes.

“That’s not an easy point in Munich,” she said. “That’s almost like religion.”

U.S. investors’ enthusiasm over Japanese stocks at this time last year turned out to be misplaced, but the market is again on the list of potential ways to diversify. Corporate shake-ups, hints of inflation after years of declining prices, and a trade battle could work in its favor.

Japanese stocks started 2024 off strong, but an unexpected interest-rate increase in August by the Bank of Japan triggered a sharp decline that the market has spent the rest of the year clawing back. Weakness in the yen has cut into returns in dollar terms. The iShares MSCI Japan ETF , which isn’t hedged, barely returned 7% last year, compared with 30% for the WisdomTree Japan Hedged Equity Fund .

The market is relatively cheap, trading at 15 times forward earnings, about where it was a decade ago, and events on the horizon could give it a boost. Masakazu Takeda, who runs the Hennessy Japan fund, expects earnings growth of mid-single digits—2% after inflation and an additional 2% to 3% as companies return more to shareholders through dividends and buybacks.

“We can easily get 10% plus returns if there’s no exogenous risks,” Takeda told Barron’s in December.

The first couple months of the year could be volatile as investors assess potential spoilers, such as whether the new Trump administration limits its tariff battle to China or goes wider, which would hurt Japan’s export-dependent market. The size of the wage increases labor unions secure in spring negotiations is another risk.

But beyond the headlines, fund managers and strategists see potential positive factors. First, 2024 will likely turn out to have been a record year for corporate earnings because some companies have benefited from rising prices and increasing demand, as well as better capital allocation.

In a note to clients, BofA strategist Masashi Akutsu said the market may again focus on a shift in corporate behavior that has begun to take place in recent years. For years, corporate culture has been resistant to change but recent developments—a battle over Seven & i Holdings that pits the founding family and investors against a bid from Canada’s Alimentation Couche-Tard , and Honda and Nissan ’s merger are examples—have been a wake-up call for Japanese companies to pursue overhauls. He expects a pickup in share buybacks as companies begin to think about shareholder returns more.

A record number of companies have also delisted, often through management buyouts, in another indication that corporate behavior is changing in favor of shareholders.

“Japan is attracting a lot of activist interest in a lot of different guises, says Donald Farquharson, head of the Japanese equities team for Baillie Gifford. “While shareholder proposals are usually unsuccessful, they do start in motion a process behind the scenes about the capital structure.”

For years, money-losing businesses were left alone in large corporations, but the recent spate of activism and focus on shareholder returns has pushed companies to jettison such divisions or take measures to improve them.

That isn‘t to say it is going to be an easy year. A more protectionist world could be problematic for sentiment.

But Japan’s approach could become a model for others in this new world. “Japan has spent the last 30 to 40 years investing in business overseas, with the automotive industry, for example, manufacturing a lot of the cars in the geographies it sells in,” Farquharson said. “That’s true of a lot of what Japan is selling overseas.”

Trade volatility that hits Japanese stocks broadly could offer opportunities. Concerns about tariffs could drag down companies such as Tokio Marine Holdings, which gets half its earnings by selling insurance in the U.S., but wouldn’t be affected by duties. Similarly, Shin-Etsu Chemicals , a silicon wafer behemoth that sells critical materials, including to the chip industry, is another potential winner, Takeda says.

If other companies follow the lead of Japanese exporters and set up shop in the markets they sell in, Japanese automation makers like Nidec and Keyence might benefit as a way to control costs in countries where wages are higher, Farquharson says.

And as Japanese workers get real wage growth and settle into living in an economy no longer in a deflationary rut, companies focused on domestic consumers such as Rakuten Group should benefit. The internet company offers retail and travel, both of which should benefit, but also is home to an online banking and investment platform.

Rakuten’s enterprise value—its market capitalization plus debt—is still less than its annual sales, in part because the company had been investing heavily in its mobile network. But that division is about to hit break even, Farquharson says.

A stock that stands to benefit from consumer spending and the waves or tourists the weak yen is attracting is Orix , a conglomerate whose businesses include an international airport serving Osaka. The company’s aircraft-leasing business also benefits from the production snags and supply-chain disruptions at Airbus and Boeing , Takeda says.

An added benefit: Its financial businesses stand to get a boost as the Bank of Japan slowly normalizes interest rates. The stock trades at about nine times earnings and about par for book value, while paying a 4% dividend yield.

Corrections & Amplifications: The past year is expected to turn out to have been a record one for corporate earnings in Japan. An earlier version of this article incorrectly gave the time frame as the 12 months through March. Separately, Masashi Akutsu is a strategist at BofA. An earlier version incorrectly identified his employer as UBS.

Oktoberfest Now Has Its Culture War. It Isn’t About the Beer.

Traditionalists criticise moves to modernise the Munich celebration as ‘woke’