Beer brewer Heineken took full advantage of the recovery from the corona crisis in the first half of the year. The economy reopened in large parts of Asia and the catering industry was able to receive customers again in Europe. The price increases, with which Heineken wants to absorb the increased costs for things such as raw materials, energy and transport, also contributed to an increase in turnover.
Heineken will increase prices in the catering industry by 5.8 percent from today. “I think it’s unbelievable,” Jaap de Boer of Herberg ‘t Plein in Meppel responds to the NOS. “We have just had corona. We are at least thinking along with us.”
De Boer continues: “Entrepreneurs are having a hard time, we may end up in a crisis. And yet people are still looking for their place in the pub. I also get sick of the excuses: then it’s the grain and then the transport again. I understand. things are getting more expensive, but will the customer still accept this?
The catering entrepreneur does not yet know whether he will transfer the bill to the customer. “If we get Amsterdam scenes here and people have to pay 3.50 euros for a vase, I will be deeply ashamed,” he says. “We’ve had this cafe for 36 years now, we just have to make sure people keep coming.”
De Meppeler believes that Heineken should do more for entrepreneurs like him. “A lot of profits are made and millions are being spent on advertising for Champions League football and James Bond films. Also think about the small business owner.”
Would it help to switch to another beer brand? De Boer thinks not. “They follow each other in step. After a week or two, the other breweries all increase their prices as well.”
This trend was previously attributed to the fact that consumers wanted to spoil themselves during the corona time. Heineken CEO Dolf van den Brink does not have an explanation for why the trend continues in these times of high inflation. “We do have a hypothesis that people cut back on more expensive things, but see a beer as a kind of affordable luxury in difficult times.”
In the end, the company had a net profit of just under 1.3 billion euros in the first six months. That was an increase of more than 22 percent compared to a year earlier. Heineken also performed well compared to 2019.
Heineken is sticking to its forecast of modest growth this year, but foresees price pressure for the rest of the year and part of next year. Compared to the recently decreased prices for grain and aluminum, for example, there is an energy price that has increased further.
Heineken wants to continue to pass on those costs, but the company keeps a close eye on consumer demand. “For the time being, it will continue to increase, also because tourism is back.”