Beer prices threatened as UK keg costs double

Beer prices could face a substantial hike after Britain's major keg supplier doubled its charges.

TrenStar owns more than 60% of the nation's beer kegs and has contracts with Coors, Carlsberg, Scottish & Newcastle and several smaller brewers. Casks are rented and paid for on a fill-by-fill basis.

Several brewers, who did not want to be named, slammed the timing and pricing.

"The size of the increase and adjacent timing is not helpful when we have already quoted for promotional business that runs next year," ​one said. "This is not good news, especially in a competitive market place such as cask beer."​This is not good news, especially in a competitive market place such as cask beer.​

Another brewer said beer prices may well have to increase in the future. "The problem is we have already had one price increase this year and will have to wait for a while. It is a very awkward situation."​

But TrenStar UK managing director Stuart Facey said the company was "forced to make a commercial decision" by the

rising price of steel and the huge numbers of kegs being stolen. Between January and August alone last year 250,000 kegs worth £10m were estimated to have gone missing.

"The reasons for the increase are straightforward,"​ said Facey.Did we want to do it? No, but there were fundamental reasons why we had no choice.​Stuart Facey, MD TrenStar UK

"The original prices had been maintained for almost five years. In that time stainless steel prices have increased rapidly, but also container losses have increased. ​

"General turn rates are becoming slower as beer sales fall. So the supply chain is slower and as the numbers go down we had to make a commercial decision," he added.

"Did we want to do it? No, but there were fundamental reasons why we had no choice."​