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Brewers and pub owners may need to push prices up as operating costs soar | Business News

According to industry insiders, pub and brewery costs are skyrocketing, which can result in higher consumer prices.

The Brewing Society of Japan (SIBA) states that the cost of essentials such as fuel, CO2, energy, bottles, cans and packaging makes it impossible for small independent breweries to recover from pandemic-related restrictions. increase.

Companies report a 73% increase in CO2 costs, a 57% increase in brewery energy costs, a 20% increase in beer can costs, and a 22% increase in cardboard packaging costs.

The association’s chief executive officer, James Calder, said the number of breweries in the UK fell in 2020 for the first time in more than a decade.

He said the government would need to stop imposing tax increases on small breweries or face a “time bomb on New Year’s brewery closures.”

“Even if the pub has already raised the price, this hasn’t been passed to the brewery and no one wants the pint price to rise to an unattractive level, but we really want to see it. What isn’t is the closure of a wide range of breweries that will see consumers. Choices have plummeted. “

He added that at a brewery in Lancashire, water costs have risen 220% over the past six months. This is a huge increase for companies that use an average of 6 pints of water to make 1 pint of beer.

And recently announced Rise in national minimum wage When National insurance premium It will put more pressure on the sector.

Roy Allkin, National Chairman of SIBA, who owns Boss Brewing in Swansea, said: Wages reflect inflation, but these changes cannot be seen alone and are part of the many cost increases of small breweries.

“Many breweries have reached their limits, and when businesses are closed, thousands of local jobs across the UK will be lost.”

Meanwhile, City Pub Group boss Clive Watson said rising living wages for the people would cost the group about £ 1 million a year.

He told the BBC that the price of beer, along with other increasing costs, “probably would have to rise by 25 to 30p per pint” to take that into account.

According to Watson, the group overcame the pandemic by involving 99% of its staff in the government’s layoff plan, but now needed a “way to recovery.”

“We want to do it little by little, which is very important, but at the same time, we don’t want everything to rise all the time, because it only causes inflation,” he added.

Brewers and pub owners may need to push prices up as operating costs soar | Business News

Source link Brewers and pub owners may need to push prices up as operating costs soar | Business News

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