Home Somerset rules Heineken warns of beer price hikes as costs bite

Heineken warns of beer price hikes as costs bite

0

Heineken is set to raise prices for its beer even further as it continues to suffer from soaring production costs.

It came as the Dutch brewer, which also makes Birra Moretti and Amstel, said it sold more beer than expected in the past three months as drinkers returned to pubs and bars after pandemic restrictions were lifted.

Earlier this year, Heineken said it saw its costs soar due to raw material inflation and rising supply chain costs.

More recently, the war in Ukraine has added another challenge to brewers as grain costs have risen further.

The company said it would look to raise prices to rein in soaring costs, with more “significant headwinds” expected later this year.

Dolf van den Brink, Chairman of the company, said: “Looking ahead, we see more macro-economic uncertainty and expect further significant inflationary headwinds which will put additional pressure on our cost base. .

“We will take additional actions, including pricing, to manage these challenges while continuing to invest in superior, balanced growth and sustainable value creation.”

The group said net revenue jumped 24.9% to 5.7bn euros (£4.7bn) for the three months to March as it was boosted by higher prices students.

The company said revenue also benefited from a 5.7% increase in volumes.

Beer sales volumes were up 5.2% from the same period last year as the company saw particularly strong growth in Europe due to relaxed pandemic rules.

Mr. Van den Brink added: “We had a good start to the year, in line with our expectations, benefiting in particular from a solid channel mix thanks to the partial recovery of on-trade in Europe and from strong pricing In every region”.