Brewers blame rising costs for price hikes

The 'Big Four' brewers have blamed increasing costs after revealing the wholesale price of key lager brands are set to increase by around 5p a pint.

ABInBev said the price of draught Stella Artois will rise by 5p a pint from February 1. Stella Artois 4% will increase by 1p a pint. Beck's Vier will rise by 7p a pint.

The company said the rises - which equate to a 3.9 per cent hike - were "within the context of continuing difficult market conditions and a challenging economic climate".

Carlsberg has also announced a 5p per pint increase across its brands. The 3.5 per cent increase will come into effect on January 31.

A Carlsberg spokesman put the increases down to "significant raw material, packaging material and transportation cost inflation that CUK is currently facing".

Meanwhile, Heineken UK said wholesale prices will rise by between 4p to 5p a pint on February 7. A spokesman said the increase was down to "increased input costs, many of which have risen well over the rate of inflation".

This follows a 5.3 per cent hike on draught Bulmers, which came into effect this week.

And Carling brewer, Molson Coors, is increasing its wholesale prices by an average of around £9.98 per barrel or 3.5p per pint on draught and packaged products from next Monday (January 24). This represents a 2.3 per cent increase.

David Heede, Molson Coors' finance director, said the company had taken "all reasonable measures to increase the efficiency of our operations and minimise the level of increase required in 2011".

Diageo has already announced a five per cent increase in Guinness effective from February 1, excluding VAT and duty.

Tenants and lessees are now waiting to hear whether the increases will be absorbed by their pubco or whether they will be passed on.