Subscriber login Close [x]
remember me
You are not logged in.

Coors adds 3p to the price of a pint

Published:  01 September, 2008

Coors Brewers has been forced to increase its wholesale price by 3p per pint because of current economic conditions and the "severity of inflationary increases."

Coors Brewers has been forced to increase its wholesale price by 3p per pint because of current economic conditions and the "severity of inflationary increases."

The makers of brands including Carling, Grolsch and Coors Light has written to its on and off-trade customers to notify them of the price hike, which came into effect on September 29.

"We are seeing input cost inflation of a magnitude that could cripple the UK beer industry," said Mark Hunter, chief executive of Coors. "Input costs, such as barley, diesel, metal and energy have risen well above inflation - barley, for instance, has gone up by more than 40% in the last year. It is no longer tenable to fully absorb the rate of input cost inflation and, after much deliberation, the company needs to make an extraordinary price increase of 3p a pint across on and off-trades.

"We have battled hard against the current trading environment with the support of our customers and a strong brand portfolio, but the severity of inflationary increases we have experienced since the beginning of 2008 has significantly exceeded expectations," Hunter added.

InBev also recently announced that it was increasing its wholesale price by around 3%, the second price increase it has announced this year. It blames steep rises in energy bills, packaging and transport costs for the increase.

"These are extraordinary times for beer," Hunter concluded. "We recognise the pressures facing brewers and beer retailers alike and we will continue to work with our customers to attack costs and create beer value through building great beer brands."

Keywords: