Heineken may hike beer prices by over 10% from January: Report

Heineken N.V., which produces Heineken Lager Beer, has said that it will hike the price of its beer and cider by almost 10.7 per cent on January 1 due to increasing input prices. The beer giant said that it has informed catering entrepreneurs in the Netherlands about its decision, according to a report in De Gelderlander.

The Dutch brewing company had implemented a hike of 5.8 per cent in the month of August after increasing it by an average of 8.9 per cent in the first half from a year earlier.

Brewers across the world have been raising alcohol prices owing to increasing input prices. Earlier, Heineken N.V. Chief Financial Officer Harold van den Broek had said that the company is contemplating more such hikes later in the year (2022) as consumers were cutting back on purchases due to high inflation. He had pointed that the whole hospitality industry was in the recovery mode after the massive pandemic blow.

The world’s second-largest brewer had warned about signs of slowdown in demand for its beer in some European markets over recent weeks. Its recent sales in the third quarter rose by less than what it had expected.

Though Heineken reported a 68 per cent increase in its beer sales in the Asia-Pacific region in the July-Sept period, the European sales, where Heineken is the market leader, grew marginally, affecting its profit books. The sales significantly declined in Britain and Italy. Unlike in other regions, beer sales in Europe remained below 2019 levels.