Latvia: Breweries plan to increase beer prices by 10 pct next year

Next year breweries will be pushed to increase beer prices because malt prices are showing between a 20-60 pct increase due to the fact that there was a poor barley harvest across Europe this year, and possible growth in tariffs of natural gas and electric, Baltic Business News said.

Eva Sietinsone, chairwoman of JSC Cesu Alus stresses that the beer industry will be not able to avoid a price rise. “Beer prices will be pushed up mainly to the malt price”, she said. At present, we do not have direct estimations, but we expect beer prices to grow by 5-10 pct next year, as malt producers have announced about significant malt price increase due to the poor bailey harvest this year”, admits Sietinsone.

Modris Goba from JSC Agrofirmas Tervete points that malt prices already doubled in EU from EUR 200 to EUR 480 per ton at present. As JSC Agrofirmas Tervete uses its own malt, the beer price will grow as will the Latvian barley prices.

According to Viesturs Silovs from Latvia’s largest brewery Aldaris , currently there is no clarity concerning natural gas and electric price increases but this fact will add more pressure on beer producers.