Pressure of inflation, supply chain continues for United Breweries

News:As per moneycontrol, United Breweries management has said that although the company is operating in a high inflation environment. With the current crisis, the management foresees the pressures of inflation and supply chain disruptions accelerating in the short term.

Views: Although UBL procures barley locally, the prices can move in tandem with global prices if there are supply disruptions due to the Russia-Ukraine issue. Also, new bottling—a significant component of total retail marketing cost (around 60%) will become costlier, with oil price surges due to the crisis.

Impact: Negative