Heineken logo is seen at the company's building in Sao Paulo, Brazil April 30, 2019. REUTERS/Amanda Perobelli/File PhotoRegister now for FREE unlimited access to Reuters.comMILAN, Aug 1 (Reuters Breakingviews) - Heineken (HEIN.AS) consumers are making up for lost time. Undeterred by higher prices, fans of the Dutch brewer are drinking more than before Covid-19 struck. Beer volumes in the first half of the year were up 7.6% organically compared to a year earlier, the Amsterdam-based company announced on Monday. That’s ahead of expectations and about 4% more than in 2019. Revenue soared 37% to 16.4 billion euros year-on-year.Much of the improvement reflects Heineken’s ability to pass on the rising cost of commodities, energy and transport to eager drinkers, while also cutting costs. Investors are also impressed: Heineken shares are roughly flat since Russia invaded Ukraine; rivals Carlsberg (CARLb.CO) and Anheuser-Busch InBev (ABI.BR) are both down about 6%.But future price increases may be harder: skyrocketing gas prices are not only hitting Heineken but suppliers of glass bottles and aluminium cans. That’s probably why Chief Executive Dolf van den Brink has shelved a 17% EBIT margin target set for 2023. Summer heat may encourage people to load up on cool drinks. Yet Heineken’s ability to keep charging them more can only go so far. (By Lisa Jucca)Register now for FREE unlimited access to Reuters.comFollow @Breakingviews on TwitterCapital Calls - More concise insights on global finance:China raises hope for emerging market debt read more Chevron rewards investors read more Aston Martin’s bumper loss needs bigger cash call read more Unilever stuck in Ben & Jerry’s Israeli limbo read more China’s politburo serves investors a nothingburger read more Register now for FREE unlimited access to Reuters.comEditing by Peter Thal Larsen and Oliver TaslicOur Standards: The Thomson Reuters Trust Principles.Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Heineken’s post-Covid bounce can only go so far.