As tens of thousands of Beyonce fans flocked to Europe for her kickoff shows, economists believe they may have caused inflation rates to stay higher than anticipated. But before we get into the halo effect on pricing, there’s pricing trouble brewing for alcohol producers and manufacturing costs are on the rise. Read on for the latest pricing news in Power to the Pricing People.
If you’ve been following Power to the Pricing People for a while now you’ll know we’ve covered inflation, shrinkflation and greedflation, so of course we had to cover drinkflation! The latest -flation refers to alcohol producers offsetting mounting prices by reducing the alcohol volume of beverages.
Following the UK government’s announcement of a new alcohol levy earlier in the year, wine makers are reducing the strength of their bottles in an attempt to keep prices steady for consumers. Wine and premium spirit producers are set to be hit hardest by the tax hike from August 1st, with vodka and gin facing a 10 per cent increase in alcohol duty, wine facing a 20 per cent increase, and port and sherry bracing for a 44 per cent increase.
Read about how the duty changes are expected to impact your tipple of choice.
Another culprit in Europe’s relentless battle against inflation has emerged: Beyoncé. Fans flocked from around the world to see her perform live last month and were prepared to fork out a hefty amount for tickets, travel and accommodation in Sweden and the UK. While the chance to see Queen Bey live in the flesh was priceless for many, statistics are suggesting it may have been costly for the economies, with headline inflation for the month in both nations higher than economists anticipated.
Read about the halo effect the superstar’s shows had on consumer prices.
And finally, a poll by Forbes, Zometry and Zogby has revealed that 91% of manufacturers plan to increase prices in the second half of the year. The survey of 150 U.S.-based executives confirmed that 62% of manufacturers have already raised prices in the first half of 2023 to offset rising costs and supply-chain disruptions. Nearly three-quarters of executives said that their sales and profits beat last year, demonstrating that getting a handle on your pricing pays.
Read more about how manufacturers have been handling market volatility.
From margaritas to manufacturing, we’ve got all your pricing pain points covered. If you want to increase your pricing power, reach out and together we’ll find the magic in your margins.
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Until next time, power to you pricing people!