Cost of living: Heineken to put up beer prices as its costs soar

Heineken, the world's second largest brewer, has warned that it will increase the price of its beers due to the impact of inflation.

The firm, which sells brand including Strongbow cider, Amstel and Europe's best-selling lager, Heineken, blamed soaring ingredient and energy costs.

It comes after the founder of Cobra beer also said its prices will rise because of "vicious" cost pressures.

Neither firm has said how much their prices will go up by.

Heineken's chief executive Dolf van den Brink said: "These kind of price increases and inflation, I think we have not seen in a generation."

He added that putting up prices could lead to "softer beer consumption" as drinkers reined in their spending due to soaring living costs.

Inflation in the UK hit a new 30-year high in January as energy prices, fuel and food costs continued to rise. The cost of living is now rising faster than wages and is expected to climb above 7% this year.

Marmite-maker Unilever, the bakers Greggs and sandwich chain Pret a Manger have all warned on price rises, while Tesco said supermarket prices could increase by as much as 5% by the spring.

Consumers splashed out on food and drink during the pandemic, and Heineken said that its net revenues increased by 11.3% to 21.9 billion euros (£13.4 billion) last year.

However, it said its input costs were now set to rise by a mid-teens percentage rate due to the price of barley doubling compared to a year ago and aluminium prices going up by around 50%.

Transport and energy costs have also risen for the business.

"Looking ahead, although the speed of recovery remains uncertain and we face significant inflationary challenges, we are encouraged by the strong performance of our business," Mr Van den Brink said.