“Consumption, with rising inflation, is struggling. Excise duties are higher than the European average. And bureaucracy related to sustainability, such as the EU regulation on packaging, is burdensome for companies.” These are the challenges that Enrico Galasso, CEO of Birra Peroni, lists for the future of the Italian beer supply chain. His company, part of the Japanese group Asahi, generates over €590 million in revenue, producing over 6.5 hectoliters of beer (2024 data), of which over 2.5% for the foreign market. And the CEO does not hide that with the outbreak of the conflict in the Middle East, the already existing problems have become more difficult to face. Also for this reason, Galasso looks to new markets, such as non-alcoholic: Asahi aims to achieve a 20% share of non-alcoholic products in its portfolio by 2030.
What impact has the war in the Middle East had?
“We are sensitive, for production and logistics, to the increase in energy costs. Peroni’s business in the Middle East is currently very compromised, also due to the supply chain. But we have not yet seen all the consequences of the crisis in Iran, especially on the consumer.”
What do you mean?
“We are beginning to perceive an increase in inflation and production costs. This will generate even more inflation and, therefore, a strong impact on consumption: a worried consumer is a consumer less inclined to buy.”
How can we act?
“In the last twenty years we have been used to having a crisis every 7 or 8 years. Now we have one every year: as companies we will have to become more agile in dealing with them to manage risk in a targeted and planned way.”
Is the non-alcoholic market a path or does it seem more like a passing fad?
“It is a market linked to a new trend that is increasingly rooted in consumers. From the very young to the over-40s, many are paying more attention to well-being and health. And for this reason we think about moderation: a drink with the same taste and ingredients as beer, but without alcohol. Innovating is important, not only by launching new products.”
What do you mean?
“We need to continuously understand how to improve, even at the communication level. Identify new positions, areas or territories relevant to consumers. Innovation can come from anyone within the company; often the best ideas come from salespeople who talk to customers or from those in marketing who are in contact with buyers.”
Producing beer requires large amounts of water and energy resources. Is it possible to reduce the environmental impact of the supply chain?
“Not only is it possible, but it is necessary. The entire Italian food and beverage sector cannot ignore this issue. We are committed to this, for example by providing farmers through Campus Peroni with knowledge on how to irrigate and sow sustainably. But greater regulatory clarity is needed.”
What are you referring to?
“Bureaucracy related to sustainability is increasing and risks becoming a burden for companies. I am thinking of the deforestation regulation. Or the European regulation on packaging, which imposes constraints for 2030. Even though it was approved more than a year ago, we still do not have clarity on how it must be implemented. Not to mention that it also represents issues in terms of feasibility.”
Is the cut in excise duties introduced in the Budget Law a positive signal from the government?
“We appreciate the cut, but it is not enough for a category under pressure from rising costs and reduced consumer purchasing power. We see it as a sign of interest that has more symbolic than material value. The reduction is marginal and the cost of excise duties in Italy is well above the European average.”
What do you ask of the institutions?
“Our supply chain is long and traditional. For this reason, we ask above all for greater government and regulatory stability. We are connected with over two thousand barley farmers, but the entire brewing sector employs 110,000 people, generating €10 billion in value. The life cycle of our products requires time and planning. Italy would also need a well-defined energy strategy.”
What benefits would it bring to companies?
“The brands of our country that export compete with others. And today we pay twice as much for energy compared to some European competitors. For a market like beer, where energy costs are very significant, it is not sustainable.”
