Heineken warns drinkers could cut back on beer as it prepares to hike prices
Heineken has warned today that drinkers could cut back on beer as it prepares to hike its prices to offset soaring costs.
The Dutch brewing giant said it is facing the worst inflation in a decade with sharp cost rises in commodities, energy and shipping.
Rising prices may have the knock-on effect of leading to “softer beer consumption” the brewer warned, as shoppers feel the squeeze of a general rise in the cost of living.
The Amstel and Birra Moretti brewer has delayed publishing its financial outlook for 2023 until later this year as spiralling inflation has clouded the outlook for the firm.
It came as Heineken reported a rise in revenues of 11.3 per cent to EUR21.9bn (£13.4bn), while profits jumped by 80 per cent to 2bn (£1.7bn).
Heineken boss Dolf van den Brink said the results were encouraging despite inflationary headwinds.
“We delivered a strong set of results in 2021 in a challenging and fast-changing environment,” he said.
“I am proud of how our colleagues, customers, and suppliers continued to adapt, support one another, and deliver these results.”
Beer volume grew 4.6 per cent for the full year, with the fourth quarter delivering an uptick of 6.2 per cent, spurred on by fewer restrictions in Europe relative to last year, alongside continued momentum in the Americas, and a recovery in Asia Pacific.
Amstel sales volume in the mid-twenties, with 20 markets growing double-digits, with in-market results particularly strong in Brazil, Mexico, South Africa and Nigeria.