Beer drinkers face a significant price hike as a European heatwave has severely damaged barley crops, driving up costs for brewers. According to a report by investment bank Berenberg, world barley stocks are at their lowest levels since 1984, with prices soaring by almost 40% year-on-year.
The cost of aluminium used for beer cans has also risen by 8% this year, following a 20% increase in 2017. Berenberg predicts that major brewers such as Heineken and Carlsberg could see production costs rise by about 16% in the next six months.
Data from The Good Pub Guide shows the average pint already costs £3.69, up 9p from last year. Londoners pay £4.44 on average, while those in Surrey and Hertfordshire pay £3.97. If costs are passed on, the average pint could rise by 59p to £4.28, with London pints increasing by 71p to £5.15.
Brewers are expressing concern. Rupert Thompson, managing director of Hogs Back Brewery in Surrey, said: 'We hear that prices are going up significantly. These sorts of issues affect us particularly heavily because we don’t own a pub estate.'
Fiona Stapley, editor of The Good Pub Guide, added: 'Running a pub is expensive - exorbitant rent prices, staff wages and general increases right across the food and drink industry make things extremely difficult for publicans.'
Already, AB InBev (brewer of Bass, Boddingtons, Budweiser and Stella Artois) has increased prices by 3.9% this year, while Molson Coors has raised prices by 3.2%. The British Beer and Pub Association said it is 'keeping an eye on the situation'.
