Price hikes in beer will be lower than last year

Two major brewers have announced that their annual beer price increase for 2006 will not be as steep as last year.

The price of all Coors beers will increase by 2.1%, in line with inflation. Carlsberg is to add a 3% price increase for all its brands. Both rises take effect on 13 February.

It means that a brewer's barrel of standard Carlsberg is to rise by £9.89 to £339.65, while Carlsberg Export will rise £11.37 to £390.37. Coors' Carling is to increase by £6.95 to £338.04

and Grolsch by £7.94 to £386.56 (see box).

Coors and Carlsberg both pointed to rising utility costs and other expenses to explain the increases.

A Coors spokeswoman said the price hike was "due to significant increases in operating costs, brought about by rising utilities and the Working Time Directive".

She added: "There are no plans for further increases in 2006; however, we would have to pass on any duty increase from the Chancellor."

A Carlsberg spokeswoman said: "The company has kept

the rises to the lowest possible level, but it must be recognised that our costs are not immune to increases ahead of routine inflation.

"Examples of increased costs include fuel and high energy charges."

However, the beer price rises are notably lower than those slapped on during last year's round of increases.

Last year, both Coors and Carlsberg came under fire from Stuart Ross, chief executive of the Scottish brewer and pubco Belhaven, who criticised them for adding "hugely inflationary" price increases.

In 2005, Coors increased its prices by 6.2% for Grolsch and 4.2% for Carling.

Carlsberg increased the price of standard Carlsberg and Carlsberg Export by around 5% last year.

And, unlike last year, both companies have chosen to set a blanket increase rather than vary the price hike between different brands.