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Beer makers plan price hike as inputs costs climb

May 30, 2022 07:01 PM IST

Although brewers are putting cost controls in place to protect their margins, rising costs of barley, glass and other packaging material has made it tough for them to avoid a price hike.

(Image: Reuters)

Like most consumer products, beer is about to become more expensive this summers as brewers try to cope with a steep increase in the prices of barley, glass and other packaging material.

According to industry estimates, the price of barley has almost doubled in three months, and the cost of labels, cartons and bottle crowns risen by more than 25 percent. Glass makers, too, have raised prices by 30 percent in three months.

“We have as such been compelled to either raise the landed cost of our beers or reduce discounts in order to remain viable,” said Prem Dewan, Managing Director (MD) of DeVANS Modern Breweries, which makes beer brands such as Godfather, Kotsberg Pils and Six Fields.

“…there may not be any immediate effect on retail rates; however, the supply of cheaper brands may be adversely affected,” Dewan added.