What is driving the price of beer up?

by time news

2023-06-10 17:45:49

Do you like to have a cold beer every now and then? So, prepare your pockets, because the price of the drink should rise in the coming months.

The main breweries in the country, Ambev e Heinekenhave already warned that they are no longer able to absorb the increase in production costs and that they will pass on part of it to consumers.

Beers should be more expensive soon in the country

But why is beer getting more expensive? According to Sindicerv (National Union of the Beer Industry), there are several factors that make the manufacture of beer more expensive.

Among the main reasons are the shortage of packaging, the high prices of malt and hops (essential inputs imported most of the time) and the increase in taxes in the sector in some states.

In addition, inflation measured by the IPCA also affects the price of beer, which composes the calculation of the index. According to the leading companies in the market, there is no longer any way to postpone the readjustment.

According to a study done by the FGV (Fundação Getúlio Vargas), breweries absorbed 52.8% of the increase in production costs from 2019 to the end of 2022, and passed on only 14% to prices.

This means that profit margins are getting tighter, especially for microbreweries, many of them even having zero profits lately.

Market growth must not stop

Despite this challenging scenario, the expectation is that the production and consumption of beer will grow 4.5% this year, reaching 16.5 billion liters.

The premium brands of Ambev and Heineken stand out the most in this segment, with increases of 35% and 25%, respectively, in the first half.

And you, will you continue drinking beer even with the highest price? Or will you look for other drink options? The only certainty is that Brazilians hardly ever give up a beer on the weekend.

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