World: Beer sales still below 2019 figures but well above crisis time of 2020
The corona pandemic, grain crop disasters in parts of the world, freight markets out of control worldwide, an unbelievable increase of the cost of energy, and finally the Russian/Ukrainian war created the worst possible basis for beer and malt markets since early 2020, with no relief in sight, H. M. Gauger GmbH reported earlier in May.
Beer markets were impacted by production and sales restrictions, and very much by the lockdown of the hospitality sector (on-premise). The dependence of brewers on the on-premise (bulk barrel) business varies from country to country. In general it hit small and craft brewers much more than the larger brewery groups.
Large brewers changed quickly to off-premise (bottles via retail trade) business and retained much of their sales volume. By now beer sales are still below the figures of 2019, but well above the crisis time of 2020. The new and huge problem is the increase of all prices, malt, energy, packing, transport. Brewers started to announce necessary beer price increases. Will the inflation impact beer sales?
Grain farmers are facing higher cost of gas, diesel oil, electricity and most of all fertilizer; nitrogenous fertilizer prices have risen from € 200/tonne in December to €1,050 now. Firmer grain markets are a must for farmers.
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