LOS ANGELES (KNX) — Beer is the latest product to suffer from inflation and shortages, and Bloomberg said Thursday that consumers will soon have to pay the price.
If you drink Corona, Modelo, or any other Constellation Brands beers, you may see an increase in prices this year, according to Chief Financial Officer Garth Hankinson.
Thursday, in the company's third-quarter earnings call, Hankinson said "that margins in the core beer business may suffer in the coming fiscal year in part because of inflation in commodity prices," according to Bloomberg.
Hankinson told the media company Constellation Brands will likely raise beer prices more than the "typical one to two percent" due to a rise in "commodity costs and a shortage of brown glass."
Regardless, both Hankinson and Bill Newlands — the company President and CEO — said the company is standing strong.
"Our Beer Business delivered strong results despite tough prior year comparisons," Newlands said in a statement.
"Our Wine and Spirits Business continued to transform its portfolio and financial profile, delivering high-end market share gains and margin expansion. Our strong overall performance drove an increase in EPS guidance for the year."
Constellation Brands remains the number one supplier of beer and its Modelo Especial remains the number one brand, according to third-quarter data analysis.
"The Beer Business now expects 10 - 11% net sales growth and 6 - 7% operating income growth for fiscal 2022 reflecting the strong performance of the core beer portfolio," the company said.
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