News & Press Releases

Why is Beer So Expensive? – How Inflation is Affecting Beer Prices

It’s not just gas prices that are on the rise. Some of the world’s major beer companies have announced that the price of beer will be increasing in 2022. Find out why beer is expected to be more expensive.

Why is Beer So Expensive? – How Inflation is Affecting Beer Prices

We’re sure you’ve noticed the price of daily necessities have been on the rise. From milk and eggs to gas prices, we are seeing a serious spike in the cost of living in countries all around the world. According to a research study conducted by the BBC, the cost of living in the UK is expected to rise by over 7% by the end of 2022. The price of beer isn’t an exception.

Following one of its best years in revenue, the world’s second largest brewer, Heineken, has announced that beer drinkers can expect an increase in the price of their beloved beers due to the impact of inflation. The Dutch brand, best known for their best-selling lager, Heineken, and Strongbow ciders, profited over $3.3 billion euros in 2021 despite the pandemic. Now, they are expecting a jump in production costs, which in turn, creates an increase in the price of their beers. This news came not too long after fellow beer brand, Cobra, announced the expected price hike of their beers, as well.

 

heinekenbis

 

Why are beer prices going up?

So, why the spike in beer prices? Well, there are many factors that play into the change in price of beer. The biggest reason: beer ingredients are more expensive. When it costs more to make an item, it costs more to buy the item and beer ingredients are getting hit by inflation, as well.

According to a representative from Heineken, the price of ingredients, like barley, and the cost of production have increased by around 15%. “These kind of price increases and inflation, I think we have not seen in a generation.” says Dolf van den Brink, Heineken’s Chief Executive Officer.

 

How much will beer cost now?

As of now, the future price of beer is unknown. While both Cobra and Heineken have yet to comment on how much the increase will be, it’s safe to assume that once the prices are announced, other brewers will follow suit.

So, it might not be a bad time to start a beer fund. You know, for rainy days… or Tuesdays.

 

Looking for more beer news? check out these articles you might like:

Here’s a List of New Breweries Opening in the US in 2022
Here’s a List of New Breweries Opening in Canada in 2022

Related Posts

News & Press Releases

Luke Bryan set to Launch Beer with Constellation Brands – Here’s Where to Buy It

Country Singer Luke Bryan is partnering with Constellation Brands to release a new beer brand, “Two Lane Brewing”. Here’s where to buy Two Lane Beer.

News & Press Releases

Uncle Leo’s Brewery Prepares for a Newcomer

Once they receive their canning machine from Calgary, Uncle Leo’s Brewery in Nova Scotia plans to increase production and grow the company.

Breweries, Pubs & Restaurants

A List of New Breweries List Coming To Alberta In 2017 (Part 2)

Here is a list of breweries that we’ve been compiling (let us know if we’ve missed any), that are coming to Alberta this summer and fall 2016.

News & Press Releases

Did This Brewery Go Too Far With Their Beer Label?

Tusket Falls Brewing has caused quite a stir

News & Press Releases

Budweiser is Planning to Change Their Labels in the Summer of 2016

Budweiser rebranded their labels this week and now you can find more ways to poke fun at your friends who drink Bud’. Get the full scoop on ‘America’ the new Budweiser beer label and see all the funny things the internet had to say about it.