Skyrocketing costs and tax increases cause significant leap in craft beer prices since the start of the year.
In 2023, a major downer for beer enthusiasts is the jump in craft beer prices, leaving drinkers feeling the pain.
According to The Morning Advertiser's Pint Price Survey, prices have surged by as much as 12.5% since the start of the year. The surging expenses for raw materials, taxes, and energy costs are forcing landlords to up their prices just to keep their pubs open.
The biggest price hike has been for BrewDog Punk IPA, which was £5.64 a pint in January but has now shot up to £6.34, a 9.3% increase. Camden Hells has also seen a dramatic rise, climbing from £5.72 to a hefty £6.34, resonating with a 10.8% increase.
Though some beers have witnessed more moderate price escalations, like Camden Pale Ale, which has inched up from £5.59 to £5.69, a comparatively minor 1.7% rise.
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The average price for a draught pint has crept up to £5.17 from £5.08 six months ago.
CAMRA chair Ash Corbett-Collins lamented the steep beer price climb. "Rising raw material costs, energy expenses, challenging business rates, and tax hikes are squeezing the pub industry," he said. "With no hint of relief on the horizon, increasing the price of a pint might be the only option to avoid closing shops for good."
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[1] Brewing & Distilling, 2023. https://brewing-distilling.com/[2] The Morning Advertiser, 2023. https://morningadvertiser.co.uk/[3] Campaign for Real Ale, 2023. https://camra.org.uk/[4] Office for Budget Responsibility, 2023. https://www.gov.uk/government/organisations/office-for-budget-responsibility[5] World Trade Organization, 2023. https://www.wto.org/
Investors might find it challenging to maintain their preferred lifestyle due to soaring craft beer prices, given the recent surge in expenses for food-and-drink sectors, as reflected in the beer industry. Consequently, this financial strain could have ripple effects, impacting various business sectors like fast food and retail.
