Sunday, November 27, 2022
Home Business tips Comment on Beer Prices Could Rise as a Result of Ukraine Invasion...

Comment on Beer Prices Could Rise as a Result of Ukraine Invasion by Robert Brady

The price of beer could rise significantly because of Russia’s invasion of Ukraine.

Reports point to how the potential increase in the cost of beer would be owed to the geographical location of the cultivation of barley. The grain is a key ingredient of beer-making and is heavily produced in Ukraine.



Beer Prices Could Rise Because of the Crisis in Ukraine

Due to the high amount of barely grain grown in the region, Ukraine is often referred to the “breadbasket of Europe.”

Any rise in the price of beer would inevitably impact businesses that rely on purchasing the much-loved beverage, namely bars, pubs, and restaurants.

Ukraine accounts for about 20% of beer’s usage of barley

Speaking of the potential rise in the cost of beer, Jim McGreevy, president and CEO of The Beer Institute, said:

“Ukraine accounts for about 20% of beer’s usage of barley. It’s one of the top five global producers of barley, so brewers, particularly at a global level, will be watching the supply and price of barley.”

With supply chain issues and disruption from the pandemic, the price of many products has been rising over the last year. Major brewers such as Malson Coors, have reportedly been able to soak up higher costs of products while maintaining prices for consumers. Not the same, however, can be said for smaller brewers, who have been forced to make adjustments to prices because of the increasing cost of goods.

Pub Owners Should Be Mindful of Rising Costs

Bar, pub and restaurant owners, and any business that buys and sells beer, would be wise to keep their eye on potential fluctuations in the cost of the popular beverage because of the crisis in Ukraine.

Beer is not the only product the war in Ukraine could impact. Russia produces around 10% of the world’s oil, and disruptions to its exports as a result of the conflict, could push prices up even more.

Small businesses that rely on products that could be potentially impacted by the conflict should stay abreast of rising costs so they can act swiftly and adjust their prices accordingly.

Image: Depositphotos


Most Popular

B.C. weather: Wind alert for South Coast, snow and winter-storm warnings for Interior

Weather warnings, from wind along the South Coast to snow and wind in the Interior and northeast, are in effect for much of B.C. On...

Toronto outdoor public ice-skating rinks open

Despite blue skies and temperatures close to 10 degrees,  and the date on the calendar, the signs that winter has arrived in Toronto are...

Black Friday vs. Cyber Monday: Retailers extend deals as Canadians shift shopping habits

When Shopify Inc.’s Harley Finkelstein surveys November’s retail landscape, he finds it hard to see where Black Friday stops and Cyber Monday begins. The annual...

Winnipeg Blue Bombers extend contract of Willie Jefferson

The Winnipeg Blue Bombers have extended the contract of defensive end Willie Jefferson. Jefferson was scheduled to be a free agent in February but the...