HomeFutures and CommoditiesMalteurop anticipates increased demand for beer ingredient, undeterred by inflation.

Malteurop anticipates increased demand for beer ingredient, undeterred by inflation.

Malteurop Expects Demand Rebound for Beer Ingredient Despite Inflation

Inflation curbs short-term demand for malt, but French-based producer Malteurop predicts a rebound in demand for the beer ingredient. The company, along with Malteries Soufflet and Boortmalt, is one of the largest global suppliers of malt used in beer and whisky production. Beer giants like Heineken have reported declining volumes due to inflation, resulting in consumer resistance to price increases.

Tight Supplies to Drive Recovery

According to Olivier Hautin, CEO of Malteurop, malt demand has fallen below the long-term trend of just under 2% annual growth. However, he confidently states that sales will soon recover due to tight supplies. Hautin did not provide a specific timeline for the rebound.

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Expansion in Mexico

Malteurop recently opened its first malt plant in Mexico, signaling its commitment to the local market. The plant, located in the northern state of Chihuahua, has an annual capacity of 120,000 metric tons of malt. This expansion increases Malteurop’s global capacity to 2.3 million tons.

The Mexican facility will primarily serve a nearby Heineken brewery and other breweries within the Mexican beer industry. In the past, these breweries heavily relied on imports to meet their malt requirements. With the new plant in operation, local production will ensure a steady supply of malt.

Emphasis on Sustainability

Malteurop is working closely with 500 local farmers to produce barley for its Mexican facility, aligning with the beer industry’s growing emphasis on sustainable and local supply chains. Additionally, the Mexican malt plant will prioritize water conservation by implementing recycling methods.

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Unique and Enriched Rewrite

Malteurop acknowledges the impact of inflation on malt demand and recognizes that consumers are hesitant to accept price increases. However, the company’s CEO remains optimistic about a rebound in sales, attributing it to the limited availability of malt. This positive outlook coincides with their recent expansion into Mexico, where they aim to meet the malt requirements of local breweries, including Heineken. By partnering with local farmers, Malteurop demonstrates its commitment to sustainable and locally sourced ingredients, a trend that is gaining momentum in the beer industry. Furthermore, the Mexican malt plant’s focus on water conservation showcases the company’s dedication to environmental responsibility.

Overall, Malteurop’s unique position as a major global supplier of malt, coupled with its strategic expansion and sustainability efforts, positions the company for success in the face of inflationary challenges.

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