Key Facts
• Climate change may raise 500ml beer can prices to over $8 due to raw material costs.
• Heavy rains and heatwaves reduce barley and hops yields, increasing procurement expenses.
• Sapporo Breweries developed a rain-resistant barley variety after nine years of research.
• The new barley reduces sprouting risk by one-seventh compared to traditional varieties.
• On September 12, Kirin Holdings announced heat- and drought-resistant hops cultivation technology.
• Asahi Group Holdings collaborates with Microsoft in the Czech Republic to monitor soil and weather data.
• A 2018 Nature Plants study predicted a $3.5 (¥515) price increase for 500ml beer cans in Japan.
• Beer sales in August dropped 11% due to heatwaves and rising prices.
Summary
Climate change is driving up beer production costs, potentially pushing 500ml beer can prices to over $8. Extreme weather, including heavy rains and heatwaves, has reduced barley and hops yields, key ingredients in beer production. To combat this, major breweries are innovating. Sapporo Breweries introduced a rain-resistant barley variety, reducing sprouting risks significantly. Kirin Holdings developed technology for cultivating heat- and drought-resistant hops, while Asahi Group Holdings partnered with Microsoft to enhance data monitoring for hop farmers in the Czech Republic. A 2018 study by Nature Plants forecasted a $3.5 price increase for beer cans in Japan, highlighting the economic impact of climate change. Recent data also shows an 11% drop in beer sales in August, attributed to rising prices and extreme weather conditions.
