Beverage producers struggle to survive

Beverage producers struggle to survive

The introduction of the sugar levy was a big blow to drinks producers. Now they also have to contend with high inflation, rising raw material, energy and packaging prices.

As a result, many companies in this industry are struggling to break even. Janusz Rubas, president of Hoop Polska and general director of Ustronianka, explains that the scale of increases is huge. For example, gas and electricity are even 500 percent more expensive than a year ago. On the other hand, the price of PET bottle pellets has gone up by 90 per cent. The producers of beverages have never experienced such large increases in such a wide range. The weakening of the Polish zloty against the most important world currencies also influences the growth of costs in the industry. This is because many raw materials are imported from abroad. For their purchase, companies settle in foreign currencies.

Currently, the producers of beverages are negotiating with retail chains the increase of prices of their products. However, a radical increase in prices could lead to a collapse in demand. In addition, from the beginning of next year, a deposit system and a product fee are to come into force, which will cover plastic bottles. This will result in higher product prices and may further weaken demand.


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