06 April, 2007

Belgium: InBev raises beer prices

The Belgium-based brewery giant InBev raises the prices for its beers as of April 1. The company said this is needed to compensate costs incurred by the new tax on packaging in Belgium, Belgian media reported March 31.

The Belgian brewery, the world's largest producer of beer by income and volume, will raise the prices of all its beers sold in bottles or cans by one percent on April 1. InBev brews some of Belgium's best known beers such as Stella Artois, Beck's and Leffe.

The price of a bottle or a can of InBev beer will rise by a further 2.5 percent on July 1 to cover rising raw material costs and compensate for inflation. Draught beer will not be affected by the price hikes, the company said on Friday.

InBev's rival Haacht Brewery also said that they are to follow suit and raise the prices of their products, such as Primus Haacht Pils.

The Belgian government introduced the new packaging tax to encourage people to use less packaging, so they will pollute less and conserve more.

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