A small town has taken co-ordinated action as a "beer ban" emerges as a new tool against a flare up in Nazi ideaology in Germany.

Ostritz, near the Polish border, has been affiliated with far-right activism before - something locals were appalled by and were determined to correct, reports the BBC.

Five hundred to six hundred Neo-Nazis attended the right-wing Schild und Schwert ("Shield and Sword" or "SS") rock music festival, compared with 1,200 last year.

Neo-nazi vinyls, lighters, caps and numerous goods for sale on a stand at the Schild und Schwert festival. Photo / Getty
Neo-nazi vinyls, lighters, caps and numerous goods for sale on a stand at the Schild und Schwert festival. Photo / Getty

They were met with a sober welcome as police had seized 4,400 litres of beer in Ostritz over the weekend after a court-ordered beer ban.

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Locals suspected that fans would descend on supermarkets, bought more than bought more than 100 crates of beer in anticipation of the neo-Nazis' arrival. Activist Georg Salditt told Bild that the number was closer to 200.

Salditt, told Germany's Bild daily: "The plan was devised a week in advance. We wanted to dry the Nazis out. We thought, if an alcohol ban is coming, we'll empty the shelves at the Penny [supermarket]."

"The Nazis weren't happy about it," local activist Markus Kremser told public broadcaster Mitteldeutscher Rundfunk.

The police tweeted photos of their alcohol seizures.

Two thousand residents reportedly also gathered for anti-racist demonstrations in Ostritz over the weekend, reports the Huffington Post.