Carlsberg has announced that it will increase the price of beer

Carlsberg has announced that it will increase the price of beer

Danish brewer Carlsberg has announced that it will increase beer prices to offset rising raw material costs, which could affect sales this year, Reuters reports.

Thus, the third largest brewer in the world reported better sales on Friday than the forecast for the fourth quarter, but said it expects organic growth in this year’s operating profit to be below last year’s level.

In his view, “Significantly higher raw material costs and the continued impact of Covid-19 will create difficulties in 2022,” said CEO Cees’ t Hart.

In terms of quantity, costs per hectolitre increased by 10-12% last year due to higher freight and transport prices, he said, adding that the company aims to offset the increased costs by raising prices, although this could have “A negative impact on beer consumption.”

As a percentage, Carlsberg expects organic operating profit to increase by 0-7% in 2022, compared to 12.5% ​​last year.

In his opinion, “We are looking at a different situation this year and, therefore, we have a wide range of financial forecasts,” said the CEO.

In its future plans, the company said it would try to expand beyond the core beer market over the next five years to focus on categories such as cider, seltzer and non-alcoholic beer, as well as premium brands such as 1665 Blanc and Grimbergen, which generates higher profit margins.

In the financial quarter, fourth-quarter sales reached DKK 15.2 billion ($ 2.34 billion), compared to analysts’ DKK 14.7 billion.