Coors adds 3p to a pint
Coors Brewers is increasing its wholesale prices by 3p per pint from 29 September - citing massive cost inflation.
Coors has become the second major brewer, after InBev, to add a second price increase this year - Coors added 4p to a pint in February.
The Carling and Grolsch brewer said it made just 2p profit per pint in 2007 and the price of basic goods continues to rise.
“We are seeing input cost inflation of a magnitude that could cripple the UK beer industry,” said Coors chief executive Mark Hunter.
“Input costs, such as barley, diesel, metal and energy have risen well above inflation - barley, for instance, has gone up by more than 40% in the last year.
“It is no longer tenable to fully absorb the rate of input cost inflation and, after much deliberation, the company needs to make an extraordinary price increase of 3p a pint across on and off-trades from 29 September 2008.
“We have battled hard against the current trading environment with the support of our customers and a strong brand portfolio, but the severity of inflationary increases we have experienced since the beginning of 2008 has significantly exceeded expectations.
“These are extraordinary times for beer. We recognise the pressures facing brewers and beer retailers alike and we will continue to work with our customers to attack costs and create beer value through building great beer brands.”
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