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Why beer could soon cost even more in Denmark

Denmark is not exactly known for having low prices for alcoholic beverages, but beer could soon be even costlier in the Nordic nation.

a can of carlsberg
The humble can of Carlsberg (and all other beer) is expected to see an increase in price in Denmark in 2022. File photo: Henning Bagger/Ritzau Scanpix

Two of the world’s largest breweries have warned that higher production costs, which could be passed on to customers in 2022.

Both Heineken and Denmark’s own Carlsberg have suggested higher prices are on the horizon.

Carlsberg’s CEO Cees ‘t Hart recently told Danish newspaper Børsen that the brewery is currently in negotiations with customers, which would see Carlsberg receive higher payments for supplying its beer products.

Heineken signalled price increases on Wednesday, when the Dutch company published its annual results. Higher production costs would mean the price of beer will increase, Heineken said.

Statements from the two companies mean customers should prepare for more expensive beer in the near future, according to an analyst.

“We have already seen that things have already got more expensive in areas like dairy, which have also been hit by high raw material costs,” said Per Fogh, stockmarket analyst with Sydbank.

“We can also see that breweries have been hit by these high raw material costs. You can therefore expect beer to get more expensive in 2022,” he said.

Heineken said that it expects production costs to go up by around 15 percent, although this does not necessarily mean the price of a glass of beer will go up by 15 percent.

“They also have other levers they can pull so as to affect some of these production cost increases,” Fogh said.

“I would expect it to be under 10 percent,” he said in relation to how much beer prices could go up.

Carlsberg and Heineken are the third and second-largest breweries in the world respectively, with Belgium’s AB Inbev the largest.

READ ALSO: Danish beer giant Carlsberg announces increase in prices

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SAS

Scandinavian airline SAS passenger numbers ‘highest since pandemic’

The number of passengers who flew with Scandinavian airline SAS in April was far higher than during the same month in 2021.

Scandinavian airline SAS passenger numbers 'highest since pandemic'

Over 1.5 million flew with SAS last month, around four times as many as in April 2020 when Covid-19 restrictions were still in broad effect.

SAS still has some way to go to return to the number of passengers it registered before spring 2020, the “pre-pandemic” period for the hard-hit industry.

The airline was affected by a pilots’ strike in April 2019 which affected results for that month, but 2.5 million people flew with SAS in April 2018, demonstrating how the airline is still lagging behind earlier years despite the apparent recovery.

“We continue the ramp-up and see the highest number of passengers since March 2020,” president and CEO of SAS Anko van der Werff said in a press statement.

“Looking forward, sales and booking trends are positive for the summer period ahead,” he added.

SAS’ capacity in April was around two-thirds of its capacity in 2018.

“SAS is a bit more restrained in increasing its capacity than many of its competitors,” aviation sector analyst Jacob Pedersen of Sydbank told news wire Ritzau.

The company faces a challenge to make as much profit from its services as it did before the Covid-19 pandemic, according to Pedersen.

“The snapshot image of the trend in April is certainly encouraging but a closer analysis gives less cause for encouragement,” he said.

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