Customers have been warned they could soon pay more for a pint after the value of the pound slumped.
Paul Davies, chief executive officer of the Carlsberg Marston's Brewing Company, said the dramatic dip in the pound signalled a "worrying" problem for the beer sector. It comes despite the fact that the pound has slightly recovered - but still remains at its lowest level in decades.
Experts warned that the pound's plunge towards being equal to the US dollar could send the cost of goods to rise even higher than before during a worsening cost of living crisis. It also means imported products, such as food and drink, could also become more expensive, with customers forking out the extra costs.
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Speaking to the BBC Radio 4's Today programme, Mr Davies warned that the price of a pint could go up due to the import of beer and hops. He added: "Many of the hops used in this country are actually imported and a lot of them, particularly for craft brewers, are imported from the States.
“Changes in currency is actually worrying for industry, and then of course people drink a lot of imported beers from Europe, and the euro versus the pound is also something we’re watching very closely at the moment.”
He continued: "Of course, things will rise. I would say as an industry we’re generally using British barley and we’re using a lot of British hops, but of course, if you’re drinking double IPA that requires a lot of Citra hop and other hops from the States, at some point that is going to have to be passed through to both the customer and the consumer if prices are this volatile.”
Experts at Kantar noted that grocery inflation increased by 12.4 per cent in August. Meanwhile, Giles Hurley, chief executive officer at Aldi, said it was "too early" to predict whether the fall in the pound's value would result in higher costs of goods. He added: "Around 75 per cent of what we sell comes from the British Isles so we are somewhat protected.
"We are insulated through longer-term agreements as well but do have products, such as general merchandise from Asia, which is bought in dollars from Asia. Right now though, we are looking to understand what any impact would be but think it is too early to say what might happen.”
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