E-Malt.com News article: UK: Carlsberg UK increases prices for beer by 4.94% effective from 20 November 2006

Brewer Carlsberg has increased its beer prices for the second time within nine months in a move that has infuriated the trade, The Morning Advertiser posted October 26.

The company is upping prices by 4.94% across the board and blaming the rising energy costs and a malt shortage - it raised prices by 3% in February.

The price increase, effective from 20 November, could add as much as 15p to a pint of Carlsberg and means its beer prices have climbed by almost 8% this year.

It will raise fears that other major brewers will slap on similar rises in the coming months.

InBev and Scottish & Newcastle UK said they had no plans to increase prices before the New Year. We have found it necessary to pass on increases in costs of production and distribution
Mark Crowther, On-trade sales director, Carlsberg UK.

"We are sticking to our promise of one price rise a year," said Scottish & Newcastle UK spokesman David Jones.

But a Coors spokesman said it did not wish to make a comment.

The Carlsberg price hike comes three months earlier than the usual round of annual increases.

The move is certain to heap further pressure on licensees already suffering themselves from rising energy costs, a minimum wage hike and the effects of cheap supermarket booze.

"We are aware that this increase occurs ahead of what would have been a conventional annual review. However, we have found it necessary to pass on increases in costs of production and distribution, which are far in excess of the Retail Price Index," said Carlsberg on-trade sales director Mark Crowther.

"Excluding any duty changes that may occur with the Chancellor's budget, we will hold any increase in Carlsberg UK brands until Autumn 2007," Crowther promised.


27 October, 2006