Carlsberg will increase beer prices by double digits at points in 2023 to help combat inflation, brokers at Barclays predicted today.
The price for Carlsberg’s beers is expected to grow by 9% in Western Europe over the next six months with prices peaking at 12% over the next three months, the British bank added.
For 2023 in total, price rises are likely to average 7.5% as the Danish brewer combats its vulnerability to energy inflation in the UK and nearby countries, Barclays said.
In 2022, the company benefitted from raising prices throughout Europe hiking prices twice last year, the second round of pricing led to revenue per hectolitre rising by 7% in a single quarter, Barclays added.
“Despite high levels of pricing, Carlsberg reiterates that it is yet to see any significant volume elasticities to date,” Barclays’ analysts stated.
The 176-year-old company made up 12% of the UK beer market in 2021, according to its annual report.
The London bank also warned investors may have to wait until the second half of 2023 for the share buyback programme to be reinstated as its focus remains on the sale of its Russian business.
Barclays rates Carlsberg shares “overweight” and target a 33.6% upside to the current Kr.949.60 share price.