Oh no: beer is going to get more expensive, Heineken warns

Just as Ahold, the parent company of Albert Heijn and other brands, recently warned that groceries are very likely to become even more expensive, Heineken says the same is expected when it comes to beer. Not exactly news to toast to, then…

The brewer is taking into account the higher prices of raw materials, transport and energy, and will pass these costs on to customers. You’ll notice that in the supermarket, and possibly in the hospitality industry too.

Everything is getting more expensive

The prices of raw materials and energy have been high for some time, but until now the company was able to cover this through longer-term contracts. But grain remains expensive, and inflation is taking its toll, which will lead to higher prices for customers.

Corona fallout

After the blow dealt by coronavirus, lockdowns naturally caused major problems worldwide. Still, last year (2021) some markets were already showing signs of recovery compared with the first year of the pandemic, 2020. In terms of volume, 4.6 percent more beer was sold than the previous year, and customers were also more likely to choose slightly more expensive beers. There were still problems for Heineken’s Asian subsidiary brand (Tiger), but the expectation is that the Asian market will bounce back faster than the European one.

Less alcohol, still convivial

Demand also grew in the 0.0% category. Heineken sold no less than 10 percent more alcohol-free beer. The company also invested heavily in hard seltzer (to each their own, but count me out). Their cider market also grew, although the English market took a major hit because of the pubs being closed for so long.

Crying at the bar

All in all, the company made €3.3 billion in profit last year. But the fact that costs will be higher this year will be felt in the wallet by every beer drinker. Maybe we should still raise a glass, but to drown our sorrows together…

Read also:

• These are the absolute no-gos when drinking beer, according to top beer sommeliers
• Only in England: eating at the pub with a subsidy
• Santé! Blue beer is now being made in France

Source: RTL Nieuws