Wednesday, September 7, 2011

Carlsberg mulls raising prices as costs climb

KUALA LUMPUR: CARLSBERG BREWERY MALAYSIA BHD [] expects a challenging year in 2012 due to rising production costs and is looking at increasing its product prices next year.

Managing director Soren Ravn said on Wednesday, Sept 7 he expected rising input costs for its products, particularly the prices of barley - a key material in brewing beer - which could be 35% to 40% higher next year.

Speaking at a roundtable dialogue, he said cost of aluminum cans had increased by 27% this year from a year ago and rising power tariff and natural gas costs from mid-2011.

He added Carlsberg Malaysia had increased its product prices by 3% in May this year but had yet to determine the quantum of a potential price hike of its beers for next year.

"We are sitting on a bomb next year with raw material prices going up strong. The market is slowing, there are rising raw material costs and operating cost inflation, 2012 has lots of concerns," he said.

No comments:

Post a Comment