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Five minutes to understand why the price of beer should go up too


The entire beer industry has to face an increase in its manufacturing costs. A price increase for consumers is not

If some found the price of a pint at the bar too high, it could get worse.

In line with the baguette, fuels, gas, electricity or even toilet paper, another product widely consumed in France could see its price increase: beer.

With just over 30 liters consumed, on average, per person and per year, the rise in prices could affect many markets.

According to professionals in the sector, rather cautious to express themselves on this subject, it is all levels of the production of this drink to be consumed in moderation that are impacted.

With higher costs, from barley grain to transporting the full bottle, rising beer prices seem inevitable.

Who is at the origin of this fear?

On October 5, the very powerful association of Brasseurs de France, split a press release.

Founded in 1878, it represents more than 98% of French beer production which generated, in 2020, 4.1 billion euros in turnover.

Brewers say they are "very concerned about the rising costs of raw materials."

"After 18 difficult months to safeguard their activities, and in a deflationary context in mass distribution which has lasted for several years, French brewers are alarmed by the increase in production costs which risks putting them even more in difficulty", alert- she does.

Without hiding it, this press release aims to put pressure on the supermarket chains with whom the annual price negotiations are underway.

"It is therefore essential that the next commercial negotiations with large-scale distribution take this reality into account," asks the association of brewers.

What are these increasing production costs?

After having questioned all the players in the sector, it seems in fact that each stage of the manufacture of your foam is impacted. Starting with the price of cereals, including barley, which make up the malt in beer. “Due to poorer harvests in some countries and the recovery in consumption after a year disrupted by the Covid, demand was higher than supply. The maltsters bought barley 15-30% more expensive than usual. We were able to sell between 200 and 225 € per ton on average, ”says Luc Smessaert, vice-president of the National Federation of Farmers' Unions (FNSEA).

Example in a small craft brewery in the Oise where Philippe Cagniart, the manager, paid 10% more for his kilo of malt than usual, or 60 cents per kilo.

For him, “foreign markets are siphoning off French silos and their four million tonnes of malting barley”.

"Not to mention that we must add the increases in the cost of energy," notes the one who brews 250 hectoliters per year.

Read alsoUnusual: in Paris, a bar where prices vary as at the Stock Exchange

Indeed, the production of beer requires bringing the brewing to a boil.

Then cool the beer before fermentation.

Very energy-intensive stages.

Then, it is the packaging of the beer that will also raise the bill.

Glassmakers, to melt their glass, also consume a lot of energy in its ovens.

Finally comes the cardboard box, a few cents, but the cost of which has also increased sharply.

There remains the transport by truck to points of sale, again impacted by the explosion in fuel costs.

In the end, French brewers have made their accounts: on average, the increases are 7 to 15% for energy, 10 to 24% depending on the packaging materials used and 4% for transport.

How big would the increase in selling prices be?

Quite logically, prices for consumers should increase.

According to the national union of independent brewers interviewed by Le Figaro, prices could "jump 5 to 10%".

It will take about 15 cents more per bottle.

“For the moment, we have not systematically passed on these increases to the consumer.

But we will not be able to continue to absorb too long, "warns Laure Bomy, general manager of the national drinks federation, which brings together 450 companies (wholesale distributors) and three billion euros in turnover.

"Beer represents 45% of our activities, we are very attentive", warns the general manager.

And the FNSEA to alert.

"If prices increase temporarily, be careful that some, always the same intermediaries, do not put their pockets full", asks the farmer of Oise, Luc Smessaert.

A probable rise in prices in which some Internet users see good news, as this teacher wrote on Twitter: “When the price increases, consumption decreases and public health is only doing the better!


Source: leparis

All business articles on 2021-10-27

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