Views: 17 Author: Site Editor Publish Time: 2022-06-14 Origin: Site
In addition to high prices in the beer industry, raw material cost prices have also hit new highs.
Last year, the beer industry experienced a round of rising raw material prices that continued throughout the year, including barley, malt, hops and packaging materials. Data since October last year show that the global barley trade has remained relatively robust, with Canadian, French and Argentinean barley prices continuing to bullish. Among the packaging materials used in beer, especially aluminum cans and glass bottles, which rose by more than 50% from the beginning to the highest point last year.
Locking in raw material prices in advance is another way. Chongqing beer president Li Zhigang said the company has locked the volume and price of packaging materials in the last year, increasing the purchase volume. At the end of April this year, Chongqing Beer made an announcement and decided to carry out aluminum hedging business for the company and its holding subsidiaries and branches to hedge the risk of raw material price fluctuations with the help of financial derivatives trading.
Increasing the recycling rate of old bottles is also a way. Huang Kexing, chairman of Tsingtao Beer, said at the earnings presentation that the company's high-end beer is now basically made from new bottles. As some of Tsingtao Beer's products are exported abroad, the old bottle recycling ratio is low in the industry, about 70%, and will gradually increase the old bottle recycling ratio in the future.
Choosing a more efficient and energy-saving beer production line is also a very important way. From beer production machines, to beer storage tanks, to beer packaging equipment, it will bring great cost savings to brewers.
On one side, manufacturers are taking various ways to save money, and on the other side, they are relying on price increases and product mix enhancements to improve product gross margins. Can we make a move to reduce the overuse of packaging materials? After all, compared to the liquor industry, high-end beer, which has a much lower gross margin than high-end liquor, is more sensitive to rising raw material costs.