Heineken N.V. said it plans to increase its prices to mitigate against the rising cost of commodities, energy and freight and warned that this could lead to a drop in the consumption of beer.
The news came as the Dutch brewer reported net revenues €21.9bn for 2021, a rise of 11.3% on the previous year, while net profits surged by 80% to €2bn.
Beer volumes increased by 4.6% over the year, with growth accelerating to 6.2% rise in the fourth quarter following an easing of COVID-19 pandemic restrictions in Europe.
Sales of its Heineken-branded beer were particularly strong, increasing by 17.4% against 2020.
In the UK, the brewer saw strong sales of Birra Moretti, but said cider volumes fell due to the closure of pubs for large parts of the year.
READ: Pub beer sales fall as Britons kept at home by pandemic opt for stronger tipple
Heineken said it will continue to navigate an uncertain environment in 2022 and expects inflation, supply chain constraints and COVID-19 to continue to impact its performance.
The company said it would postpone publishing of its guidance for 2023 until later this year as inflation is making the outlook cloudier.
“Looking ahead, although the speed of recovery remains uncertain and we face significant inflationary challenges, we are encouraged by the strong performance of our business,” said Heineken chairman Dolf Van Den Brink.