By THOUSIF INC
Beer Prices Could Rise as a Result of Ukraine Invasion
The grain is a crucial ingredient of beer-making and is heavily produced in Ukraine.
Due to the high amount of grain barely grown in the region, Ukraine is often referred to as the "breadbasket of Europe."
Any rise in the price of beer would inevitably impact businesses that rely on purchasing the much-loved beverage, namely bars, pubs, and restaurants.
Speaking of the potential rise in the cost of beer, Jim McGreevy, president and CEO of The Beer Institute, said:
"Ukraine accounts for about 20% of beer's usage of barley."
"It is one of the top five global producers of barley, so brewers, particularly at a global level, will be watching the supply and price of barley."
With supply chain issues and disruption from the pandemic. The price of many products has been rising over the last year.
Significant brewers such as Malson Coors have reportedly soaked up higher product costs while maintaining consumers' prices.
However, smaller brewers cannot be said, who have been forced to adjust prices because of the increasing cost of goods.
Bar, Pub, restaurant owners, and any business that buys and sells beer.
They would be wise to keep their eye on potential fluctuations in the popular beverage cost because of the Ukraine crisis.
Beer is not the only product the war in Ukraine could impact.
Russia produces around 10% of the world's oil, and disruptions to its exports due to the conflict could push prices up even more.