Few beverage industries are as ubiquitous as beer and have such a vast infrastructure to support its supply and distribution. In recent years brewers have come under intense pressure, initially from the pandemic, where lockdowns cut off customers from bars and restaurants. More recently, soaring inflation has swollen the input costs of everything from barley to cans and bottles.
Dutch brewer Heineken has responded by raising prices for customers, the company told shareholders at results this week. On average, prices climbed 12 per cent higher in the first three months of this year compared with the same time last year. Those were “unlike anything the industry has ever experienced”, says Trevor Stirling, an analyst at Bernstein, a stockbroker.
Naturally, consumers have cut back on Heineken beers as a result. Heineken sales volumes were 3 per cent lower over the same period, about as much as analysts expected. Its quarterly results also reveal the idiosyncrasies of different beer markets.