Brewery boss warns of £7 a pint in some cities
Spiralling production costs could drive up the average price of a pint of beer to £7 in some cities, a Scottish brewer has warned.
Brewgooder chief executive Alan Mahon said the price of raw ingredients, such as wheat and barley, were rising faster than the rate of inflation.
He also pointed to energy prices soaring to “eye-watering levels”.
Mr Mahon added that carbon dioxide was now costing 3,000% more than it did this time last year.
He said: “I used to think ‘perfect storm’ was a cliché until we found ourselves slap bang in the middle of what the industry is facing right now.
“It is perhaps a greater long-term challenge than that created by rolling Covid lockdowns.
“From what we are seeing, the pressures on the industry with cost price inflation challenges and the chancellor’s scrapping of the alcohol duty freeze might make a £7 pint the norm rather than the exception in many places – particularly in bigger cities.”
Mr Mahon, who co-founded Brewgooder in 2016, added: “This is bound to make a pint a relative luxury for a lot of people, something we should all be concerned about and force us all to take stock of the challenges facing the beer industry.”
Earlier this year, research by consultancy firm CGA found that the average price of a pint of beer in the UK was £3.95, although there was considerable variation around the country.
Jim Rowan, managing director at wholesaler Dunns Food and Drinks, which serves more than 4,000 hospitality customers across Scotland, said brewers’ production costs had already seen prices hiked twice this year.
He said: “Pubs etc have been passing these increases on to the public and, so far, the consumer has been understanding.
“Like all products there is a glass ceiling which generally you can’t go through. It used to be £5 per pint, now it’s £6 – £7 per pint in some cities is now in sight.”
