Raw material increase may boost prices up to 15%
Heineken expects the cost of producing beer to increase 15% in 2008 and announced that they expect to “fully pass on the impact of the increased input and energy costs in most of its markets” reports the Morning Advertiser in Great Britain.
Heineken’s announcement is the third warning of rising beer prices in two days following Carlsberg and S&N yesterday.
Heineken said the intended acquisition of S&N’s UK business would help it drive “premium Heineken brand growth.”
It said: “The acquisition will also add attractive brands such as Newcastle Brown Ale, Foster’s, John Smith’s Bitter and Strongbow cider to Heineken’s brand portfolio.”
The list is noteworthy for the brand not mentioned —Kronenbourg. Speculation is that the brand will be axed in the UK in favor of Heineken.