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People Are Buying Up Campari, Heineken To Outsmart Inflation

Sales are rising despite price hikes, wars and a rocky emergence from a pandemic.

As inflation continues to hit both daily routines and wallets, people do what they can to counter rising prices: some by driving less, others by not taking that vacation and still others by buying up certain liquors before the prices rise.

Over the last month, more than one alcohol producer reported an increase a boost in sales in advance of rising prices. The maker behind not just the spirit needed to make a Negroni but also brands like Aperol and Grand Marnier, Campari reported revenue of 535 million euros (US$562 million) in the first three months of 2022.

Reuters.

Heineken Is Also Not Struggling

Dutch beer brewer and brand Heineken  (HEINY) -  also saw a 5.2% annual jump in beer sales; sales to bars and restaurants in particular nearly tripled. As Heineken significantly raised prices on some of its premium products, revenue jumped 24.9%.

"Raising the price on premium products won't be met with as much consumer kickback as it would on a value offering," Hargreaves Lansdown analyst Matt Britzman Reuters.

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This type of demand has also kept investors happy as Heineken shares, which have been falling for the last two years, rose 2.85% in the last month.

While strong sales cannot always be tied into specific trends such as inflation or the pandemic, the fact remains that many people are buying more alcohol than they were earlier.

financial services company Rabobank, online alcohol sales from grocery stores quadrupled from around $441 million in 2019 to $1.6 billion in 2021. In 2022, sales are expected to grow by another 15% to $1.87 billion.

7.9% and 30% in the same time period, but is significant enough to have a psychological effect on many people's buying habits — for the makers, this is large a positive as fear of inflation can often lead to panic-buying and stocking up on the part of the consumer.

As a result, sales of spirits like Aperol and Campari are able to survive even major world events like Russia's war on Ukraine — while the company has not stopped business in Russia entirely like many other companies, the cuts would have been significant enough had it not been for the global spike in sales.

"What we decided to do in Russia is to basically reduce the business significantly, our aim is to have enough sales to cover the wage bills of our people in the country," Kunze-Concewitz told Reuters.