IS there some kind of drop or something, I dont get it, it doesnt seem like a normal holiday event where you get an item that once the event is over you cant get it ever again. What is the story with this?

There's a guy east of Varrock bank named Pretzel Bert who gives out pretzels for 1gp each. They don't last for the next update however.

 

That's pretty much all there is to the Oktoberfest stuff in Runescape.