CEO Morning Brief

Carlsberg to Hike Prices From July 1, Blames Rising Input Costs

Publish date: Fri, 03 Jun 2022, 09:51 AM
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TheEdge CEO Morning Brief
Carlsberg to hike prices from July 1, blames rising input costs

KUALA LUMPUR (June 2): Carlsberg Brewery Malaysia Bhd said it will increase the prices of some of its products from July 1 due to rising input costs.

In a document sighted by The Edge, Carlsberg said that despite its cost-mitigation efforts, the group had to “adjust” the prices of the products because of the increasing input costs worsened by the Russia-Ukraine conflict.

“We wish to inform you that due to the unprecedented escalation in input costs, which is further exacerbated by the Russia-Ukraine conflict, we have taken the decision to implement price adjustments for a selection of our products,” the brewer said.

The new prices for the group’s beer, stout and cider will take effect from July 1, said Carlsberg, adding that retail selling price remains at the sole discretion of the retailers.

“Despite our best efforts to mitigate this price adjustment with several cost control measures, including absorbing partial input costs, we are unable to sustain the increasing cost inflation,” said Carlsberg.

The brewer said it is cognizant that a price adjustment in the current tough environment is a challenge for all parties, and has therefore limited the price hike to selected brands and SKUs (stock-keeping units).

Shares in Carlsberg ended 20 sen or 0.89% higher at RM22.70, giving the group a market capitalisation of RM6.94 billion.

Source: TheEdge - 3 Jun 2022

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