Blog: Olly WehringOn the up in 2008? Prices, that is

Olly Wehring | 3 December 2007

While the majority of you out there in the drinks world appear to have your heads down, making the moo-lah as Christmas approaches - Happy First in advent for yesterday, incidentally - a pattern for 2008 already appears to be taking shape.

Although Anheuser-Busch said last week that its full-year earnings growth remains on track, commodity cost pressures have clearly made their presence felt at the brewer this year.

This was followed later in the week by Asahi Breweries joining other Japanese brewers in unveiling price rises for next year. Budejovicky Budvar, meanwhile, followed suit, saying it would up its prices by between 4% and 6% next month.

While this pattern suggests that it's only the brewers who are having it tough, I think many of you are aware that these pressures are appearing right across the drinks spectrum. Raw materials, packaging, transportation - the costs of all of these are heading north, and it's the consumer who, finally, is getting hit.

How that consumer is going to react to these price hikes will be the sternest test of the much-lauded idea of brand loyalty. Especially here in the UK, there will always be cheap (and cheerful) drinks available in the off-trade. While we’ve had the chance to get comfortable with several global brands over here, we’ve also got used to low prices.

And so, the battleground for next year appears to be set. And all this, before we even start to look at ‘going green’, which could prove more expensive still.

Who’d be a consumer?


BLOG

Budweiser races to stock Mars bars

For those people looking to the Red Planet as shining utopia away from all things earth, look away now....

BLOG

When life gives you lemons, make soap

Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....

BLOG

Small measures required as Philadelphia soda tax adds up

Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....

BLOG

Accolade Wines and a giant of the tennis world

Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...

just-drinks homepage



Forgot your password?