It is very likely that next weeks the price of beer in France will increase from 5 to 10%, that is to say between 10 to 15 cents. Why? We explain…
Via SudOuest and The Connexion
French brewers are suffering the consequences of several factors: bad cereal harvests, the rise in the price of energy and raw materials. Three factors that are reducing their margins now and in the short term.
Pierre Marchica, general manager of the 3 Monts brewery in Saint-Sylvestre-Cappel (Flanders), told BFMTV on October 25 that prices could rise by 5 to 10% for consumers if wholesalers do not act to protect them.
There are different reasons for the rise of the price of beer in France. Mainly, the poor cereal harvest this year as a result of rain and frost this spring, which heavily impacted production. The price of cereals rose 30%, according to the president of the national union of independent brewers (SNBI), Jean-François Drouin, who responded to the newspaper Le Figaro on this issue.
In addition, the increase in the price of energy (throughout Europe), causes a rise of 7 to 15% more for brewers, according to the newspaper Le Parisien. For brewers, the entire brewing process consumes a lot of energy, from boiling to cooling before fermentation. The same goes for the production of glass bottles.
On the other hand, labeling is also costing and causing the price of beer in France to rise. The price of paper has been on the rise for a year now and continues to rise. Since October 29, 2020, it has risen by 43%, which has an impact on the price of labels and packaging cartons. An estimated price increase of between 10 and 24%.
“Our labels are made of paper, a booming market,” adds Jonathan Abergel of the Parisis brewery in Épinay-sous-Sénart (Île-de-France). “The bottle is made of glass, a sector where prices are also skyrocketing. And then we have the metal of the stopper, whose price is also going up.”
Even the stainless steel used to make brewing equipment is rising in price.
“Tanks that normally cost €30,000 can now cost €45,000, which could reduce the investment power of brewers,” said Drouin, who added that this is the first time he has seen such rapid inflation in the 20 years he has been in the industry.
Finally, transport to the points of sale is also affected by the rise in gasoline prices, which corresponds to a 4% increase for the 2,300 brewers established in France.
An unexpected hit for beers producers in France
French brewers were just emerging from the crisis caused by Covid-19. “For the moment, they have taken from their margins,” explains Jean-François Drouin. “Wholesalers and distributors must also take from their margins to keep the selling price to consumers as low as possible,” Drouin asks.
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