Carlsberg due to raise prices to cover rising costs
In a recent report, the Danish brewer warned that this year it anticipated a slowdown in beer consumption across Europe due to increased prices denting profit growth. Speaking to the trade, Carlsberg said that, this year, it expects organic operating profit to change by between minus 5% and plus 5%, compared with 12% growth last year.
Carlsberg chief executive Cees ‘t Hart said in a statement: “2023 will be another challenging year. While beer historically has been a resilient consumer category, the higher prices in combination with generally high inflation may have a negative impact on beer consumption in some of our markets, particularly in Europe.”
Globally, many brewers have already been forced to raise beer prices in response to rising energy and raw material costs, however bigger companies have thus far found ways to absorb or circumnavigate price hikes and inflation.
Carlsberg has said that last year its revenue per litre of beer sold grew 9% but highlighted how this year it would have to raise prices by a “high single-digit” percentage in an effort to cover costs.