artisan producers
With the arrival of the new year, artisan producers are preparing a price increase, amid an escalation in the costs of their main raw materials, which has not given up since the start of the pandemic. Although this does not prevent them from absorbing a large part of the operating costs, companies have transferred a percentage to final consumers.
“Prices cannot be raised so much because we can become uncompetitive, as there are so many products available, the elasticity of the consumer to switch from one brand to another is very high,” says José Rosas, president of the Association’s statistical commission. Mexican Brewery (Acermex).
Rosas, who is also one of the founders of the Cyprez brewery, rules out that in 2023 some of the challenges that have become persistent since 2019 will dissipate, especially with regard to grain prices, which have become more expensive due to the rise in fertilizers, as a consequence of the conflict in eastern Europe.
The purchase of cans adds to this list. This container, which became an option for breweries due to the shortage of glass in the world, raised its price so much in international markets that it is no longer an affordable alternative.
Long-term contracts are also causing some bottlenecks, as small brewers have been unable to meet advance hop purchases, leading to cost overruns.
“We brewers have to work better on our sales projections. The pandemic moved us all and it has been difficult for us to resume jobs. Several of us have had delays in terms of consumption and contract compliance”, says the member of Acermex.
While the small breweries hope that there will be a boost in sales with the reopening of bars and restaurants, which have stopped operating with restricted capacity and hours. Above all, because some of these are specialized in craft beer and it is where consumers do not question the prices, which are usually higher compared to industrialized beers.
“If the restaurant is doing well or the bar is doing well, we are doing well,” says the president of Acermex’s statistics commission.
With the impact on consumption and the high prices of raw materials, consumers have also received an impact, with the 9.34% increase in the price of the drink, from December last year to November 2022, according to Inegi data. .