A brewery boss has warned that the average price of a pint could exceed £7 in some places in the UK — and will be treated "as the norm".
Alan Mahon, who founded the Brewgooder brand, said rocketing costs driven by the war in Ukraine, the weaker pound, rising taxes and soaring inflation had thrown the industry into a panic made worse by the scrapping of the freeze on alcohol duty announced by Chancellor Jeremy Hunt earlier this month.
Mr Mahon said the cost of raw ingredients such as wheat and barley were rising well in excess of the inflation rate. Brewers were also facing spiralling prices for energy and gas, which were at record highs. And the price of carbon dioxide — essential for the brewing process — was now costing 3,000 per cent higher than this time last year.
Mr Mahon said his Glasgow-based firm, whose customers include Asda, Morrisons and the Co-op, as well as restaurants and hotels, would continue to honour all of its ongoing commitments to supporting good causes, with almost £100,000 set to be donated to charity in 2022.
However, with inflation, instability and rising energy prices putting the squeeze on people's disposable income, Mr Mahon said pubs and brewers would find conditions tougher even than during lockdown — unless the public came out and showed their support for pubs and clubs.
He said: “The pressures on the industry with cost price inflation challenges and the Chancellor's scrapping of the alcohol duty freeze might make a £7 pint the norm rather than the exception in many places – particularly in bigger cities. This is bound to make a pint a relative luxury for a lot of people, something we should all be concerned about."
He said publicans would be hoping for a positive response to the forthcoming World Cup and Christmas season from punters, and could help save many businesses in the hospitality sector from going under.
“It is therefore vital the industry and brewers continue to work hard on ensuring that the pub environment is something that cannot simply be re-created at home – whether that be through beers only available in the pub, or in encouraging people to socialise and meet friends for a drink or something to eat through various marketing or promotional platforms," he added.
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