HEINEKEN has warned that the price of beer including Amstel and Birra Moretti is set to rise as a result of inflation.
The beer maker announced in a statement that is expects to be “significantly impacted by inflation and supply chain resilience pressures”.
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It said costs will go up because of a sharp increase in the prices of commodities, energy, and freight.
Higher production costs – such as barley and aluminium caused by supply chain disruption will be passed on to customers, the company said.
It also suggested the price increase of its beer could lead to people drinking less.
A latest statement reads: “We will offset these input cost increases through pricing in absolute terms, which may lead to softer beer consumption.”
Although the company announced that it had recorded better profits than expected in 2021, Heineken said that the pandemic was still causing disruption to its business.
Besides the rising inflation, a slow recovery in nightlife could also impact its revenues for 2022.
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The price increase announced by the brewery is expected to put pub owners into even more pressure, forcing them to make difficult decisions.
Dave Mountford, founder of Forum of British Pubs, thinks it could lead to fewer beer choices for customers.
He said: “There are already shortages in pubs – I believe that the pub-owning businesses will simply start to focus on their own brands which will reduce choice further and also restrict the microbreweries already reduced access to market.”
It came after the founder and chairman of Cobra Beer warned customers that the price of its booze will go up just a week ago.
Karan Bilimoria, said the group was experiencing price pressures “in every way” when it comes to making its booze.
He said that while the company is looking to “absorb as much of the increase of costs” as it can, he warned shoppers to expect prices go up.
“It does mean businesses have to put up prices, and if you have to put up prices, that of course means higher prices to the consumer,” he said.
Previously, we revealed beer drinkers are facing paying 50p more for a pint in order to avoid pubs going bust.
It means some punters may have to pay over £7 for a pint in London.
The average cost of a pint in the UK is currently £4.07, according to the British Beer and Pub Association.
And beer isn’t the only booze going up in price – wine is too.
Households face paying an extra 20% for bottles of plonk this year – meaning a £7 bottle of wine could go up to £8.40 under the hike.
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This post first appeared on thesun.co.uk
