Drowning One's Sorrows

The price of a pint of lager in the UK is likely to increase by 5p, the second such price rise in a month, after brewers said they were forced to pass on the higher costs of manufacturing the drink.

Britain's four biggest brewers have all announced price rises, to take effect from the start of next month.  The price rises, which will be levied to their customers, the pub companies, are the second time in a month that the cost of beer has gone up, following the increase in VAT from 17.5% to 20%.

That tax rise pushed up the price of an average pint of lager by 6p from £2.99 to £3.05 on average, according to the British Beer and Pub Association.

Brewers are now adding a further 5p to the price of many lagers because of the rising cost of energy; ingredients, especially barley (which shot up in price following the global commodity spike last year), packaging and distribution and transport*, which is one of the major costs of beer.

It is not yet clear how much of the price rises will be passed onto drinkers, who have been hit by not only the VAT rise, but also a rise in duty which has gone up more quickly than inflation.  Ten years ago a pint of lager was just £2.04.

*So why not drink local real ales to help keep the cost of distribution and transport down?  And an ale is far superior to lager anyway.

More at TTel.