opinion

A resignation by any other title

Operator opinion: Gav Young from the Plough and Barleycorn hits back at recent price rises
Operator opinion: Gav Young from the Plough and Barleycorn hits back at recent price rises

Related tags Beer Finance Legislation

The annual pantomime of brewery price rises has begun, kicked off by the same villain that brought you two price rises this year.

Once again, the press are blindly reporting the numbers presented by the brewer and clamouring for a duty cut, the greatest smoke screen of all.

When you account for wastage, margin (at 60%) and VAT a headline 38ppp rise equates to £1.2 to the consumer. As a trade we need to be vocal that this is the real number and stop letting the public hear only the brewer’s song.

Corporate greed

Of course, the pubs could lose margin or swallow the VAT but if the mega businesses of brewers can’t swallow inflationary rises in their stellar profits how can anyone expect an independent landlord to do so.

There is 43p duty on a pint of 4% lager. In this pantomime its corporate greed that is the real villain it just likes to call out duty as a diversion.

Brutal rises

Once again we see draught products hit with brutal rises​ while packaged products see far less despite rising aluminium and glass being cited as justification for the rises.

I know that some venues have price caps and protections in place but their numbers are reducing. How long before the drive to huge price rises results in the distribution being unsustainable for ‘such small numbers’?

It may be presented as a price rise letter but I suspect behind the mask this is actually a resignation from the independent on trade.

Related topics Beer

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