The News
The owner of Guinness, the iconic Irish beer, announced Tuesday that it plans to increase the cost of the brew by 12 euro cents per pint, local media reported, prompting reactions from pub owners and Ireland’s prime minister.
Despite beer being considered generally recession-resistant, Guinness isn’t alone in raising prices in recent weeks. Popular beer brands around the world are pointing to inflation as a reason for increasing costs.
The View From Ireland
Diageo, which owns Guinness as well as liquor brands like Johnnie Walker, Smirnoff, and Captain Morgan, said it is facing rising production prices.
“We have absorbed these costs for as long as possible but unfortunately, we can no longer continue to do so,” the company said, according to the Irish Examiner.
Diageo reported operating profits of $5.3 billion in fiscal year 2022, according to its annual report.
The owner of a Dublin pub told the newspaper that the price hike comes as “another kick in the teeth for the industry.” Prime Minster Leo Varadkar said he doesn’t think it will put any pubs out of business, but “with combined rising costs, it will cause financial hardship for many.”
The View From The Netherlands
Heineken, the second largest brewer in the world, announced late last year that it plans to increase beer and cider prices by 10.7% in 2023, the NL Times reported.
That follows a 5.8% price hike in August. The industry group Koninklijke Horeca Nederland, which represents the hospitality sector, said in a statement that it was “not amused” by the news.
Heineken said it is facing higher energy bills and higher costs for raw materials.
The View From The U.S.
The cost of beer purchased for consumption at home rose 7.7% from November 2021 to November 2022, according to the U.S. Bureau of Labor Statistics. Liquor and wine costs increased just 1.3% and 3%, respectively, in the same time period.
A report from Bump Williams Consulting found that over the last 13 weeks of 2022, the cost of popular American beers including Bud Light, Miller Lite, Yuengling Lager, and Coors Light rose by 10%, USA Today reported.
The View From Mexico
The group that represents small merchants and corner stores in Mexico said in December that Grupo Modelo — the Mexico City-based brewery that owns Modelo, Corona, and Pacífico — was increasing its prices, Bloomberg Línea reported.
One corner store in Mexico City reported a 10% hike on Grupo Modelo beers.
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