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The Brewers' Union has decided on a new, 9.5% price hike, while European beer-makers are facing the weight of the cost-of-living crisis
Today, the Austrian Brewers’ Union announced that they will have to introduce another price increase on their products so that producers can keep up with the growing prices of raw materials and energy. The union has set the increase to 9.5%, which will come into effect at the start of February.
As the ORF reports, many restaurant and bar owners have raised their concerns, because they have already seen a decrease in customers due to the rise in the cost of living. Moreover, because of the nearly 10% hike, retailers and the catering industry will have to pass the cost on to consumers or switch to alternative brands.
This could serve to further hamper the post-Covid recovery of the tourist sector in the country. According to a new study by the Austrian Institute of Economic Research, visitor numbers are almost at pre-pandemic levels, however, they are spending way less than before.
Additionally, the sector had a lot of hopes for the skiing season, a staple of Austria as a tourism destination. However, the unusually warm winter has pushed skiing spots to offer other activities like motocross, because of the lack of snow.
Inflation and the prices of raw materials and energy are forcing beer prices up across Europe, with the German Beer Association raising the alarm in late December that some businesses may buckle under the pressure.
Beer makers are facing a nearly doubled cost of malt, doubled costs for pallets, an 80% rise in the price of glass and a 70% increase in the price of some corks. Furthermore, extreme drought conditions have affected the agricultural yield of hops with an estimated 28.6% less of the material produced in Europe this year.
Big producers have also decided to raise prices despite growing revenues. Heineken, for example, reported a 33.4% rise in profits last year, despite selling only 13.9% more beer. The company announced a 10.7% price hike in January, despite two price increases in 2022, 5.8% and 3.4%.
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