Beer brewer Heineken warns that beer prices will rise. The company spends more on raw materials and transport, with an estimated 15 percent increase in costs. The company passes these higher costs on in the beer price that consumers pay. It is not yet clear how much more expensive beer will become in the supermarket and on tap.
Heineken has had one of the best years in its history. In 2021, the beer group made a profit of 3.3 billion euros, which is the highest profit this century. In 2020, the company still suffered a loss of more than 100 million euros. In that year, beer sales collapsed because cafes and restaurants were closed all over the world due to the corona crisis.
Last year, Heineken was much less affected by this. Beer sales are almost back to pre-coronavirus levels. In North and South America, sales are even higher than before the corona crisis. At the same time, the company’s profitability has increased. During the corona crisis, it carried out a reorganization in which 8,000 jobs were cut.
Heineken believes that beer sales may grow less rapidly this year due to higher beer prices. The company also expects that it will take a while in Europe before beer sales are back to pre-coronavirus levels.
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