Lack of barley, shortage of aluminium accelerate beer prices

The third most popular drink overall after water and tea is beer and it is becoming more expensive in Europe. The largest brewery group in Germany, the Radeberger Group made public that it will raise prices for both the hospitality and retail trade from spring due to the surge in the price of energy, transport and raw materials.

Globally, the situation remains the same, the shortage of barley to prepare the malt and the dearth in supply of aluminium to make the cans are accelerating the beer prices.

The brewing industry is experiencing similar problems as other industries like the lack of labour, more expensive transport and supply of raw materials.  As a result, AB InBev, the world's biggest brewer, lately increased the prices in Brazil, Colombia, Mexico, Nigeria and China.

In Poland, the price of beer will increase following the govt. introduces a higher excise tax on alcohol from next year. Further excise duty will come into force every year for the next five years.

The present ruling government has thought that alcohol has become very economical for the Polish people, while the salaries of the citizens have soared higher than the average percentage of beer prices. Hence, the govt. exemplifies to augment the excise duty on beer and other alcoholic products in connection with the health of the citizens.

The global troubles of the brewing industry came at the worst possible moment. Manufacturers have only just begun to recover from the coronavirus pandemic that has led to the closure of bars, restaurants and sports venues around the world.

The production of barley has dropped in the US, Canada and EU region, whereas, at the same time, the prices of aluminium, the vital raw material for beer can packing has skyrocketed.  The market price of aluminium reached the highest in 13 years and importation of aluminium from overseas also remains record high.

The brewery producers are therefore engaged in a big fight for aluminium cans and their prices are breaking new records every few days. The beer makers stated that the consumer’s habit has switched from bottles to cans and the blame is given to the Covid-19 pandemic lockdown.

The sales of canned beverages towered during the lockdown, as beer drinkers stopped drinking "out of the stick" due to the closedown of bars and restaurants, while shoppers in supermarkets opt for the popular pack of six in aluminium cans due to their lightweight than glass bottled beer.

The Aluminium Association said: "The aluminium can industry saw unprecedented demand for this environmentally friendly container before and especially during the COVID-19 pandemic.”

Furthermore, it is not only the brands entering the market picking their products to sell in aluminium cans but also the existing producers in order to safeguard the environment and keeping in mind the cost of recycling, that have diverted from bottles to aluminium cans. Accordingly, the brewers of the industry combed the world for the stock of cans available and they even brought them from the other part of the world.

Notwithstanding, the fact that all packaging plants in the USA are producing at full capacity, but the demand still persists at a huge volume that forced some beverage producers to import cans from Brazil, Saudi Arabia and even Asia. It creates mammoth expenditure of transporting empty cans, though consumers are already paying for it, or will be paying soon.