Beer

Infographic: The rising cost of beer to tenants

By Ellie Bothwell

- Last updated on GMT

Infographic: The rising cost of beer to tenants
Tenanted pubcos react to wholesale increases.

The big tenanted pub companies have increased their beer prices, following the announcement of wholesale price rises by major brewers earlier this year.

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Enterprise Inns, Punch Taverns, Marston’s Pub Company, Star Pubs & Bars, Greene King and Admiral Taverns have all upped their prices, adding further costs to pub tenants.

The brewers cited upward pressures on supplier’s costs of materials, manufacturing and distribution as the reason for the changes, which saw increases between 2.9% and 3.6% for top brands.

The price rises mean licensees will have to up the retail price of a pint if they are to maintain their margins, despite the fact the Chancellor announced a 1p per pint cut in beer duty last month for the third year in a row.

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6 comments

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David

Posted by ken nason,

Please point out what I have posted that is factually incorrect or idiotic.

History shows that it is such comments as you have just made and your invention and inbuilt inability to understand what others post that leads to your"50 comments argument"(another invention)

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Nasonomics

Posted by david,

Another lesson from Nason in 'Nasonomics'.

I despair, truly despair at his idiocy.

Which bit of the article does he want to turn into another 50-comment argument?

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Gentlemen

Posted by ken nason,

You both seem to have grabbed the wrong end of the stick. Costs are overheads and cost of stock is not an overhead. Calculating whether an increase in stock price is passed onto the customer or taken from your bottom line is a choice that has to be made by the licensee.

Increasing your price MAY lose you trade but not increasing your price WILL diminish your profit.

The licensee has to decide what actions he takes to minimise lost trade as a result of any price increases he passes on. It is a business decision that has to be made.

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