Price blow for beer drinkers

10:00am Thursday 28th December 2006

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BEER drinkers can expect to pay up to 12 pence more for their pint next year as brewers prepare to increase their prices.

The UK's largest brewer, Scottish & Newcastle whose brands include Tadcaster-based John Smith's, has warned the cost of beer for wholesalers will go up by 3.5 per cent - about seven pence - from next month.

This will initially hit small grocers and corner shops who make up the majority of wholesale customers, but pubs and clubs are likely to face similar rises by spring.

Carlsberg, which brews in Leeds and supplies several York pubs, is increasing its prices by 4.9 per cent for pubs, clubs and restaurants taking the average cost of a pint in some York pubs from £2.50 to £2.62.

Scottish & Newcastle blamed its increase on spiralling costs of raw materials.

A spokesman said: "We're trying to make our increases reasonable, but there's been some huge inflationary costs on our business."

York landlady Dee Ralph, who leases the Bay Horse, in Blossom Street, from John Smith's, currently charges £2.05 for a pint of John Smith's, and the rise will take this to £2.12.

"This happens every year," she said.

"Customers have a look of shock. People only have a certain amount of money. With these longer opening hours, it is going to have a knock-on effect for smaller pubs like mine. There is a Wetherspoon next door to me. I can't compete with their prices.

"Across the road is the Sainsbury's Jacksons, where a case of Stella bottles is about £9."

The pub sale price for a bottle of premium lager is about £2.50.

Dave Gardner, of The Last Drop Inn, in Colliergate, a York Brewery pub, said he expected their prices to go up by about ten pence a pint in the new year.

"It will primarily be York Brewery beers. We will either put the rest of the bitters up when the budget goes through or, I imagine, we will put them up all at once.

"Customers probably won't like it. It doesn't cost us much more to brew, but it is the duty that goes up."

The family-run Tadcaster-based Samuel Smith's does not usually comment on price rises.

However, a pint of bitter at its Kings Arms pub, in Kings Staith, is only £1.42, while a lager is £1.68.

Jim Thompson, York Campaign for Real Ale (Camra) chairman, said: "If Sam Smith's can maintain their pubs to such a high standard and still only charge so little for their beer then why can't everyone else? A lot of people will take to drinking at home or even home brewing which is a real shame. It is another nail in the coffin for local pubs, particularly rural pubs."

Trevor King, chairman of York Licensed Victuallers Association, said: "Any rise in beer prices puts more pressure on us, particularly as everyone is seeing the price of a pint in the local supermarkets. We can't compete."

He said supermarkets should also be hit by price rises.