Beer consumers to shun high-class brew as inflation bites - Jefferies

Royal Unibrew A/S

19/10/2022 09:15

** Royal Unibrew's  RBREW.CO  profit warning, which was
released on Tuesday after trading hours, suggests a recent
change in consumer behaviour, Jefferies says 
    ** Negative sentiment following the outlook cut has spilled
over other European brewery stocks, with Carlsberg  CARLb.CO 
falling 3.6% and Heinekein  HEIN.AS  3% in the red
    ** The profit warning shows that negative mix effects are
emerging, and that they will likely hit premium products, the
broker says
    ** Mainstream and below mainstream beer is likely to be more
popular, while classier beverages will be consumed less and on
fewer occasions, Jefferies adds
    ** "While there is a broader push towards premiumisation
across European beer, this is a decade-long evolution rather
than a more recent trend" - Jefferies
 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@tr.com))