Stella, Hovis hype premium positioning as wheat soars
Inbev is hiking the price of Artois beer by 5p a pint, despite facing a continued year-on-year decline in volume as it struggles to maintain its premium positioning.
The wholesale price hike encompasses both on and off-trade and is effective for stock deliveries made from April 28. Inbev attributes the increase to rising operating costs, with wheat prices doubling over the past year. Hop prices are also predicted to more than double this year.
Meanwhile, Premier Foods is also understood to be planning a price increase on its Hovis brand.
It is thought to be planning a relaunch, including new products and packaging, just three years after it invested £10m to support a reformulation of its brand.
A retail source says it is planning to add “some premium healthy options”, but that the plans aim to pass on the increase in wheat prices to consumers.
The changes are the latest move in a tough year for Stella, which has also faced major management changes. Andreas Hilger moved from the company’s German office to become the marketing director of Inbev UK (MW January 31), while chief executive Richard Evans left his role after 14 years and was replaced by Stuart MacFarlane (MW.co.uk February 18).
The two stepped into their new positions as Stella faces a decline in volume, despite remaining the leading premium brand.
Last year, the brewer replaced the brand’s “Reassuringly Expensive” strapline with“Pass on something good”. Industry observers say its upmarket image has been hit by its strategy of turning to discount promotions (MW February 7).
