Dieter Schulze, president of Ursus Breweries, the second-largest beer producer on the domestic market, says the company's decision to increase beer prices, as a result of this year's drought, is heavily influenced by moves made by its main rivals.
"It is difficult to say whether we will increase prices further. Of course we would like to operate price increases in order to cut costs, but this largely depends on the market. We increased our prices in April, whilst our competitors did not. You cannot increase prices too frequently, as we have to consider the competition," said Schulze.
In April, Ursus increased its prices by around 3.5-4% for the majority of its brands, as a result of an increase in the price of raw materials. According to Ursus representatives, malt prices increased by 40% on the free market, to 400 euros per tonne this year, because of the drought.
"At present, we do not know if, and by how much, prices will increase this year, because we will have to wait until the end of August, when the harvest is completed," added the president of the company.
Schulze specified that, last year, 80% of raw materials were acquired from the domestic market, with the remaining 20% imported.
"This year, the percentages will change, with imports witnessing an increase. For the time being, we have absorbed the costs for some beer brands and increased the prices of others by a level slightly below the inflation rate. We will only be able to make a decision regarding a potential price increase after the harvest," added Schulze.
Among the positive effects of the heat wave is an increase in beer sales on the domestic market.
Last year, domestic beer consumption reached the European average - 80 litres per capita - the same level as in Hungary, although still behind Slovakia and Poland, which have a consumption level of approxima
