You might want to think twice before offering to get a round in at the pub anytime soon as the cost of a pint could soon soar to a whopping £7 in some parts of the UK thanks to inflation.
Inflation returned to a 40-year-high of 10.1% in September, driven by rising food prices - the first time inflation has gone above 10% in 1982 - and everything around us seems to be costing more by the minute.
UK brewer Brewgooder have called on the public and the government to support the pub trade amid their warning of £7 pints (it hurts us to even type that).
Wheat, barley and inflation - a perfect storm
Alan Mahon, founder and CEO says that spiralling production costs driven by the conflict in Ukraine, currency and duty challenges, and soaring inflation had created a ‘perfect storm’ for the industry.
Wheat and barley, two crucial components of brewing, he explains, are rising well in excess of the rate of inflation and other key ‘unseen’ materials such as energy and gas – have hit eye-watering levels, with carbon dioxide now costing a whopping 3,000% more than it did this time last year.
As inflation and rising energy prices continue to put the squeeze on people’s pay packets, Mahon warns that the pub and brewing industry could find conditions even tougher than what they went through during the national Covid-19 lockdowns.
When a pint becomes a luxury
“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,” says Mahon.
“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.”
Jim Rowan, managing director at wholesaler Dunns Food and Drinks, which serves more than 4,000 hospitality customers across Scotland, said brewers’ production costs have already seen prices hiked twice this year.
He said: “On average we can expect a print of lager to go up by as much as 50p per pint, premium beer by more.
“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.”
If you’re heading out for a pint anytime soon, it’s crucial that you support your local pub more than ever.