The owner of a Scots brewery has warned the price of a pint could hit £7 on average in some cities because of inflation.
It comes after the Chancellor scrapped the alcohol duty freeze which could see prices skyrocket during a period where people may be less likely to spend.
Alan Mahon, founder and CEO of Glasgow-based brewer Brewgooder, warned the drinks industry could be in for a "perfect storm" of challenges.
He said: "I used to think ‘perfect storm’ was a cliche until we found ourselves slap bang in the middle of what the industry is facing right now.
Alan explains that raw material prices for beer ingredients such as wheat and barley are rising faster than the average rate of inflation.
He adds things that don't often come to drinkers' minds when they think of what goes into beer are also experiencing huge price hikes.
The brewery CEO says carbon dioxide prices are 3,000 percent higher than they were 12 months ago.
This could have an impact on beer prices at pubs, bars and restaurants and may make sky-high prices "the norm rather than the exception", according to Alan.
While the winter World Cup rolling into the Christmas season may provide some much-needed buzz around the industry, the CEO warns that businesses face huge challenges.
Alan said: “From what we are seeing, 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 and force us all to take stock of the challenges facing the beer industry."
However, he adds the beer industry is prepared for tough times, stating: “The beer and pub trade is a resilient industry, one that's full of passionate people who will dig deep during the challenges to come. It's important for the public and the government to recognise their efforts with support in the coming few months.”
Jim Rowan, managing director at wholesaler Dunns Food and Drinks, which serves more than 4,000 hospitality customers across Scotland, said brewers’ production costs had already seen prices hiked twice this year, and predicted a further rise of at least 50p a pint before the end of the year.
He said: “Prices across the UK’s cities will always vary depending on the cost of rates, rent, free hold, wage inflation, min wages , staff shortages , heat and lights etc. These have all impacted on the price.
“However, prices from brewers have gone up twice this year so on average we expect a print of lager to go up by as much as 50p per pint. Premium beer by more.
“Pubs etc have been passing these increases on to the public and, so far, the consumer has been understanding. Like all products there is a glass ceiling which generally you can’t go through. It used to be £5 per pint, now it’s £6. £7 per pint in some cities is now in sight.”
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