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Brewery boss warns pints could cost £10 as pubs struggle to cover energy costs

Brewery boss warns pints could cost £10 as pubs struggle to cover energy costs

Charlene Lyons, the boss at Black Sheep brewery, has warned that pints could surge beyond £10 if the cost-of-living crisis continues

The boss of a brewery has warned that the price of a pint could rise to as much as £10 if the cost-of-living crisis doesn’t get sorted out soon.

Obviously, pints have become more and more expensive in recent times for a variety of factors, but chief amongst those reasons is that just about everything else has become more expensive too.

At the minute, pubs are struggling with the aftermath of Covid-19, as well as the fact that it costs a load of cash to keep the lights on and the place heated.

Even doing so is a big gamble, because you need enough punters in the gaff to make it worth turning everything on and paying staff, that’s why many pubs have been opening at reduced hours and – in some cases – even getting (understandably) shirty with the energy companies themselves.

Everything in the brewing industry costs more at the minute.
Edwin Remsberg/Alamy Stock Photo

Another thing affecting the British boozer is that breweries are having to increase their prices as well, largely because they are dealing with the same set of problems.

Yorkshire brewery Black Sheep has become the latest to announce a price increase, sticking 19.5 percent onto their draught ales as of next month.

That means – in all likelihood – that the cost will be passed onto the paying customer, with pubs unable to stick the extra charge.

It’s a vicious cycle that – if not dealt with – could spell the end for a lot of pubs.

After all, it’s not exactly like the average pub-goer is awash with spare cash for pints at the minute, either.

The buck has to stop somewhere.

Across a national average, the current going rate for a pint is £4.24, but many will have paid well in excess of £5.00 for a jar.

Costs are soaring across the hospitality industry, including at Black Sheep brewery.
Washington Imaging/Alamy Stock Photo

If things contine, that figure could be doubled according to Black Sheep boss Charlene Lyons, who said to BBC Radio 4’s Today last month: “If we pushed all the price increases over to the consumer, you’d be talking about over £10 a pint.”

Lyons wrote to publicans around the country this month explaining the reasoning behind their price rise, stating: “These are incredibly challenging times for our industry and for breweries and pubs in particular.

“We have resisted passing on considerable cost increases to our customers for some time and as a business we have absorbed as much as we can.”

Black Sheep is far from the most recognisable name in beer to make such a difficult decision, with Heineken also ramping prices up by 15.8 percent on all beers and ciders.

That means that not just Heineken, but Foster’s, Kronenbourg, John Smith’s, and Birra Moretti will be getting dearer.

The government claims that a new non-domestic energy scheme will help pubs out when it comes into force on April 1, but many within the industry have said that targeted help for pubs, breweries, and hospitality venues is needed.

Publicans want targeted help to stop more pubs closing.
Ian Canham/Alamy Stock Photo

Lyons herself described the package as ‘brutal’.

With Chancellor of the Exchequer Jeremy Hunt set to make the next budget announcement on March 15, it remains to be seen whether any specific help will be forthcoming.

That all adds up to more turbulent times for those in the pub industry and those who frequent them.

Featured Image Credit: Nikolaenko Viacheslav/Tetiana Strilchuk/Alamy Stock Photo

Topics: Money, UK News, Food And Drink