Pubs consider price increases

By Nikkie Thatcher

- Last updated on GMT

National reports: price increases in the on-trade hit the headlines of mainstream media publications this week (image: Getty/Moussa81)
National reports: price increases in the on-trade hit the headlines of mainstream media publications this week (image: Getty/Moussa81)

Related tags: Beer, Food

A number of The Morning Advertiser's (MA) readers have increased their prices amid reopening this month (April), following months of closure.

Some 88 operators voted in the poll, with more than half (58%) saying they have increased their prices, less than a quarter (24%) haven’t pushed prices up but were planning to, and just 18% had no plans to implement a rise.

Earlier this month, pubco Star Pubs & Bars responded to reports it suggested lessees and tenants increase their prices​ on beer amid reopening for outdoor areas from 12 April. 

The MA​​ understands the pub company information that was sent to its licensees mentioned that operators should consider reviewing their prices.

The MA ​​also learnt the communication cited research from CGA, which suggested most customers were prepared to pay more for a pint of beer.

Annual price rise

Heineken was one of a number of brewers which announced its annual price rise​​, which usually takes place in January, was being deferred until April — with rises ranging from 2.8% to 4.5%.

More recently, brewers have found demand for beer amid pubs reopening outdoors had exceeded predictions but stated they were keeping up​.

The Daily Mail ​​​reported Heineken was limiting UK pub orders with licensees only receiving three kegs a week of Birra Moretti due to supply issues.

A spokesperson for Heineken UK estimated more than 10m adults in England have headed back to the great British pub, with many drinkers opting for a draught pint.

High demand

“Demand for Birra Moretti and Amstel has totally surpassed our most optimistic forecasts and our breweries are working round the clock to deal with this high level of demand," the spokesperson added.

“We are working closely with our customers to keep them regularly updated on the situation and to offer alternative beers from the extensive Heineken UK range of brands, as we increase production.”

Budweiser Brewing Group (UK&I) said its teams had been preparing for weeks, gearing up for the public returning to pubs and had invested more than £115m into its breweries to create 630m more pints a year.

The MA ​​understands Carlsberg Marston’s Brewing Company is also seeing high demand, but is managing to meet it.

Similarly, Asahi highlighted the level of work that had been going on to prepare for pubs partially reopening in a bid to ensure beer demand was met.

Related topics: Beer

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