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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Heineken, Strongbow and Amstel prices to rise as inflation hits alcohol costs


The world's second largest brewer, Heineken, is to increase the price of its beers due to the impact of inflation.

The Dutch company, which supplies brands including Strongbow cider, Amstel and Europe's best-selling lager, Heineken, blamed soaring ingredient and energy costs.

It comes after the founder of Cobra beer also said its prices will rise because of "vicious" cost pressures.

Neither firm has said how much their prices will go up by.

Heineken said its input costs were now set to rise by a mid-teens percentage due to the price of barley doubling compared to a year ago and aluminium prices going up by around 50%.

The firm's chief executive Dolf van den Brink said: "These kind of price increases and inflation, I think we have not seen in a generation."

It comes after a strong year for the company, after lockdown pub closures sent its profits soaring.

Heineken said that its net revenues increased by 11.3% to £13.4billion in 2021, with sales of its Heineken-branded beer up by 17.4%.

The brewer's profits rose by 80%, although it said the coming year remained "uncertain" due to "inflationary challenges".

"It's very hard for us as experts to say whether Heineken's increased production costs are wholly reflected in higher prices for customers," the company added.

He added that putting up prices could lead to "softer beer consumption" as drinkers reined in their spending due to soaring living costs.

Inflation today hit a new 30-year high in the UK, as energy prices, fuel and food costs continued to rise.

The cost of living is now rising faster than wages and is expected to climb above 7% this year.

Marmite-maker Unilever, the bakers Greggs and sandwich chain Pret a Manger have all warned on price rises as their costs rises.

The consumer giant - which already raised prices last year - has confirmed that the cost of several of its popular goods will go up, but that it would vary from country to country.

Unilever said: "We don't want to put prices up but we're seeing the highest inflation we've seen in a decade. There will be price increases on some products and in some markets but it will not be uniform across the world."

The company said that it expects "very high" cost inflation of £1.7bn in the first half of 2022 but added that it also forecasts strong growth in sales this year as it raises prices despite sharp decline in its profit margins.

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