Carlsberg price rise to match inflation

Carlsberg is bucking a trend among major brewers by increasing its prices roughly in line with inflation.

Wholesale prices are to rise by an average of 2%, or 1.9p per pint, from 25 February.

Last week Scottish & Newcastle UK (S&NUK) announced a 5.7% increase, while Coors said prices would rise 4.5% from 11 February.

However, unlike S&NUK and Coors, Carlsberg's price is expressed inclusive of duty.

My gut feeling is it's the first of two increases Carlsberg will almost be bound to put on​Graham PageAC Nielsen

This means Carlsberg's duty-exclusive increase is higher than 2%.

In a statement Carlsberg said its rise is "a fair and realistic level, and reflects the rise in production costs"​.

It added: "The industry is extremely tough and challenging with rising costs in all areas of the business. This increase, very low in comparison to our competitors, signifies Carlsberg UK's commitment to its customers in keeping prices rises to a minimum.​

Efficiency initiatives​

"Carlsberg has been able to keep the increase to a minimum by delivering a number of efficiency initiatives across its production processes during 2007.​

"However, with the continuing rise in raw material costs and expected increases in utility charges, the climate still remains extremely tough going forward."

AC Nielsen consultant Graham Page suggested the moderate increase may be a way for Carlsberg to re-adjust its prices to be nearer its competitors.

Last year the brewer was criticised for introducing a £5 delivery supplement charge to the freetrade.

It also had two price rises in 2006 - 3% in February and 5% in October.

Page said Carlsberg had a relatively strong Christmas in the off-trade and had been buoyed by new on-trade accounts including Orchid Group and NUS Services.

But he added: "My gut feeling is it's the first of two increases Carlsberg will almost be bound to put on."​

Carlsberg spokesman Gareth Roberts said: "We will have to monitor it as we go through the year, but there are absolutely no plans [for two increases in 2008]."​