InBev announces further 3.3% price rise

InBev has announced a second price increase this year of 3.3% in the on and off-trade from 15 September.

The Stella Artois brewer is blaming steep rises in energy bills, packaging and transport costs.

The move will heap further pressure on hapless licensees who will once again be forced to up the cost of a pint to the consumer in order to protect their dwindling margins.

InBev last increased its prices on 28 April by 4.15% on draught products and 4.1% on packaged brands.

Supermarket prices, however, are likely to be largely unaffected by the rises - as displayed by the sectors continual discounting of beer following the Chancellor's duty rises.

"We have made every effort to absorb rising costs but the sheer size of increases we have faced in recent months and the fact that we are seeing further rises across virtually every element of our business, means that we now reluctantly have to pass on some of these increases to customers," said InBev UK and Ireland president Stuart MacFarlane.

"We are committed to being as efficient a producer as possible in terms of our operating overheads and will continue to focus on cutting costs across the business. We are at the same time continuing to invest heavily in our leading portfolio of brands.

"However, the fact remains that the brewing process is a very heavy user of energy so rises have an immediate impact on the price of producing a pint - particularly so given the scale of the increases we have had to cope with this year.

"I cannot remember a time when so many major cost increases have come through so consistently across virtually every aspect of our business."

AC Nielsen consultant Graham Page said: "There's got to be a distinct possibility there could be a third increase before the year is out."

He pointed to falling beer sales - new British Beer & Pub Association (BBPA) figures show a 10.6% fall in year-on-year volumes in April to June 2008 - and rising costs as the key factors.