With inflation and rising raw material costs draining its bottom line, Heineken N.V. announced on Wednesday that it plans to raise beer prices.
Amsterdam-based Heineken – Europe’s largest brewer and second in global sales only to Anheuser-Busch InBev – is the latest beer producer to cite inflation and raw material costs as reasons why prices at the tap or grocer’s shelves are due to increase.
Aluminium, fuel and freight costs are all increasing. Meanwhile, Heineken is still recovering from a year of lower-than-normal income as hospitality, entertainment and travel industries shut down or reduced operations during the height of the Covid-19 pandemic.
In 2021, Heineken reported sales of €26.6 billion and a profit of €2 billion. A year ago, Heineken reported sales of €23.8 billion and a profit of €1.2 billion, according to financial results released by the brewer on Wednesday morning.
"Looking ahead, although the speed of recovery remains uncertain and we face significant inflationary challenges, we are encouraged by the strong performance of our business,” said Dolf Van Den Brink, chief executive of Heineken.
Anheuser-Busch InBev, owner of Budweiser, Stella Artois, Leffe, Jupiler and other brands, and Carlsberg Group, owner of Carlsberg and Grimbergen, among other brands, previously announced price hikes because of inflation and raw material costs.