The Czech Republic: Beer prices to see another significant increase as early as next month

The Association of Czech Beer Brewers has announced that the price of beer will see another significant increase in June due to the soaring costs of energy and barley, the Prague Morning reported on May 25.

According to the president of the association, Michal Voldřich, the higher costs of energy and raw materials such as malt and hops, will send up the price of beer by an average of 10 percent as of June.

Most breweries increased their prices in the spring and further increases can reportedly be expected at the end of the summer, when many breweries will see their contracts with energy suppliers expire, forcing them to accept less favorable tariffs.

Part of the cost pressure has been driven by the Russian invasion of Ukraine, which is the world’s third-largest producer of barley. Global prices of the grain have risen by around 30% since the conflict began in February.

The Czech Republic has topped the per capita beer drinking ladder for 24 consecutive years. Czechs annually drink on average 143.3 litres of the golden brew per person.

The cost of beer in Germany could soar by ‘up to 30 percent’

Germany’s brewers’ associations expect price hikes of up to 30 percent, according to a report by the daily newspaper Bild.

“The cost increases are beyond all dimensions,” Holger Eichele, General Manager of the German Brewers’ Association, told Bild. “Whether it’s pallets, brewing malt, beer mats or crown corks – the prices are going through the roof. We haven’t experienced anything like this yet.”

Prices for gas have risen by 430 percent compared to the previous year, and prices for electricity by 250 percent. Even prices for pallets have risen by 150 percent. “It’s clear that such drastic cost increases have to be passed on to the price”, Eichele said.

Food is one of the drivers of current inflation. In March 2022, for example, food prices rose by 6.2 percent compared to the same month last year.

25 May, 2022