The mercury is rising and so is the tab to cool down. Get ready to pay more for beer during the peak summer season as brewers are seeking a 10-15% increase in the prices.
The demand to increase beer prices comes to offset higher barley and other raw materials costs as per reports.
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Prices of barley, the key ingredient for a lager, have surged 65% just in the past year, add to that higher packaging and transport costs as well.
United Breweries, the owner of popular beer brands -- Kingfisher and Heineken, during its March-quarter earnings said its gross margin was lower by 330 basis points as compared to the corresponding quarter of the previous financial year due to inflationary pressures witnessed in the prices of malt, packaging materials, and crude oil.
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"The commodity cost picture remains challenging and volatile," it said, adding, "The company is in the process of securing price increases in combination with continued cost measures to mitigate this impact."
Alcohol prices in India are controlled by individual states. While some states such as Telangana and Haryana have increased prices, others are yet to do so.