Asahi warned its flagship lager and other popular brands it brews in the UK, including Peroni, Fuller’s London Pride, Grolsch, Meantime pale ale and Cornish Orchards cider, would jump in cost
Top-selling draught beers and ciders will soar in price after a major brewer blamed Government tax hikes and red tape for hiking costs.
Asahi warned its flagship lager and other popular brands it brews in the UK, including Peroni, Fuller’s London Pride, Grolsch, Meantime pale ale and Cornish Orchards cider, would jump in cost from February.
The Japanese lager giant’s UK and Ireland sales director, Dhati Holohan, blamed last month’s Budget and Labour’s controversial Extended Producer Responsibility “recycling tax”, saying there was “only so much” that Asahi could absorb.
She said: “The cost profile of our business is increasing.
“We see where inflation is and how much [alcohol] duty has increased – there will be costs that will need to be passed on.”
Ms Holohan did not say precisely when the brewer would increase the prices it charges pubs for kegs of its lagers, ales and ciders.
But she said alcohol duty hikes, which will rise in line with inflation from February, would “absolutely be passed on”.
Already struggling publicans, who face making a measly 13p profit per pint after the Budget, will almost certainly be forced to pass on price increases to pub-goers.
Following Chancellor Rachel Reeves’ decision to uprate alcohol duty by 3.66%, drinkers could face forking out an eye-watering average of £6.36 for a pint of Peroni – up from £6.14 – from February 1.
Ms Holohan said: “We see how tough it is out there for outlets.
“The on-trade is incredibly important, not just as part of the fabric of our community, but it’s also really important from a British business doing well perspective.”
She said the firm would mitigate rising costs as much as possible through finding efficiencies where it could.
It comes after the British Institute of Innkeeping said nine in 10 of its members would hike drinks prices as a result of the Budget.