World: Malt prices under pressure, brewing industry continues to raise prices
European malt prices are under pressure as barley prices have dropped in the face of the pending barley harvest in France, RMI Analytics said in their latest repot at the end of June.
The brewing industry continues to raise prices in response to the inflationary pressures experienced across the supply chain, but it is proving difficult to keep pace with the high inflation rates. As an example, AB InBev raised beer prices in the US by 6.2% in 2022 and yet has still lost ground to inflation, running at 8%. The story is similar in Brazil, where inflation is running at an amazing 10.7% and outpacing the price increases implemented at 8.5%.
The challenge exists across the brewing and distilling market, Heineken’s CFO recently outlined guidance for ‘high teens’ inputs inflation up from ‘mid teen’s previously discussed. According to the RMI analysts, product price inflation remains the central headwind to volume growth recovery.
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