The Iran war increased the cost of beer production for European companies.
Major beer producing companies in Europe have been warned that the increase in the cost of energy, transportation and raw materials after the Iran war has affected their profitability and will likely lead to an increase in the price of their products next year.
According to Reuters, the companies Anheuser-Busch Inbio, Heineken and Carlsberg announced that with the continuation of the Iran war and the increase in the global price of energy and raw materials, the pressure on their production costs has increased.
Beer producers need energy and fuel to produce glass bottles and aluminum cans, as well as to transport their products. Many of these companies have previously kept the price of some raw materials and energy fixed with long-term contracts, but as these contracts expire, they are forced to pay higher costs. Anheuser-Busch Inbio, maker of brands such as Stella Arteva and Badweiser, announced that the increase in the cost of raw materials, distribution and transportation in America, Europe and South Africa neutralized some of the company's revenue growth.
Heineken, the second largest beer producer in the world, also announced a significant increase in costs, mainly in Asia, some African countries and Europe, and said that these pressures will continue in the coming year.
The Danish Carlsberg company also predicted that the costs caused by the war, and especially the price of energy and aluminum, would rise in 2027. The CEO of this company said that to compensate for some of these costs, he will raise the price of his products next year.
The increase in production costs is not limited only to the beer industry, and large companies such as Coca Cola and Procter & Gamble have also warned against the economic pressures caused by the continuation of the Iran war.