The owner of Tennent's Brewery has warned customers may face further price increases - but hopes the upcoming Scottish cup final will drive trade.
David Forde, Chief Executive of Tennent's, has said the cost of living crisis and inflation has led to "anxiety" about the future of the pub industry.
Tennent's owner C&C Group has issued a warning that the company could face its second price hike in six months, after they initially increased prices in November.
It comes after the company returned to profit following the easing of Covid restrictions, reports The Scottish Daily Express.
The Scottish lager company reported an operating profit of £40.6million, just ahead of their estimated target, following a loss of Euro £54m the year before and hiked prices in November.
However, Forde has said that they are looking to the Scottish Cup Final between Rangers and Hearts this Saturday, May 21, as a means of getting punters back into the pubs.
Chief executive David Forde said: "We are back and there is relief, but it is not straightforward.
"You get into the issues around labour shortages, supply-chain constraints, and the fact that our customers are having to work incredibly hard just to be to able to deliver the type of service that their customers need.
"I would think the feeling right now is probably a little bit of anxiety, just quite not understanding what the future has in store.
"Inflation is a reality. Our customers have had to take price increases and people are asking the question: how much more inflation has to come into my business as a pub owner?
"And equally, how much inflation can I pass on to my customers, and are they willing to take it?"
The company said it has started the current year "strongly", but Mr Forde said there was an "anxiety" in the pub trade because of inflationary pressure and the cost-of-living crisis.
It warned more rises may be necessary given "additional input cost pressure, particularly at our manufacturing facilities", even though hedging and cost savings had "provided a degree of protection against cost inflation".
Mr Forde said "The outlook is a bit uncertain. We all know that inflation is with us, the cost-of-living squeeze is with us.
"But if I look at the challenges we have lived through over the last two years, what is ahead of us pales into insignificance with the challenges we have come through."
He said events such as this weekend's Scottish Cup Final between Hearts and Rangers and Scotland's forthcoming World Cup play-offs against Ukraine as opportunities to drive trade.
Mr Forde added: "Were Scotland to be successful, we will have a November when the World Cup is held that we have never had in the past.
"It does not take much to get consumers back into the on-trade. It is an affordable luxury. It is hard to see it getting easier for pubs.
"The reality is our market is not under-pubbed - there are still plenty of pubs. Consumers in Scotland do not have to walk too far to get to a pub."
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