Price of six popular pints set to rise in pubs as major brewer battles Rachel Reeves’s tax grab

Heineken has revealed plans to raise prices on several of its most popular pub drinks from February 2, with increases of 2.7 per cent affecting Amstel, Birra Moretti, John Smith’s Extra Smooth, Old Mout cider and Inch’s cider.

The brewing giant’s alcohol-free Heineken zero per cent will also see a price rise.

However, Foster’s drinkers will benefit from a reduction, as the company confirmed it is lowering the lager’s alcohol content from 3.7 per cent to 3.4 per cent, bringing the price down accordingly.

Murphy’s Irish Stout will remain at its current price, with Heineken opting to freeze costs for the brand.

Packaged beer and cider products from the brewer will also stay at existing prices.

Asahi has similarly announced that costs will rise for its range of beers and ciders brewed in the UK, including Peroni, Fuller’s London Pride, Grolsch, Meantime pale ale and Cornish Orchards cider.

The Japanese-owned company’s UK and Ireland sales director, Dhati Holohan, confirmed the increases would take effect from February, though an exact date was not specified.

She pointed to the recent Budget and rising inflation as key factors driving the decision. The Chancellor announced that alcohol duty would rise in line with inflation, with the Treasury confirming that the duty would increase 3.66 per cent, in line with the Retail Price Inflation (RPI).

The price rises could push the average cost of a pint of Peroni to approximately £6.36, up from the current £6.14, once the increase comes into force on February 1.

Ash Corbett-Collins, chairman at Campaign for Real Ale CAMRA said: “We are bitterly disappointed that alcohol duty has been hiked today. Instead of delivering a substantial cut in tax breweries pay on their beer going to be sold in pubs, the Chancellor has made the damaging choice to hike alcohol duties, including on draught beer and cider.

“This extra hike in taxes on drinking in the pub can only risk more pubs and breweries being lost to the communities they serve.”

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Both brewing companies have attributed the price increases to a combination of Government policies and rising operational costs.

The 3.66 per cent alcohol duty rise, set to come into effect in February in line with inflation, has been cited as a primary factor.

Employer taxes and the introduction of the Extended Producer Responsibility packaging scheme, which places additional financial obligations on companies regarding recycling, have also been blamed for adding to the burden on brewers.

Heineken’s price rises are separate from the duty increase, which the company indicated would be passed on to customers in the usual manner.

The British Institute of Innkeeping has reported that nine in ten of its members intend to raise drinks prices following the Budget.

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A Heineken spokesperson told the Morning Advertiser that the company had kept price rises “as low as possible” and was taking steps to support pubs with “targeted savings and price certainty”.

“We know pubs are still shouldering significant cost pressures,” the spokesperson said. “The operating environment remains challenging, with inflationary inputs such as employer taxes and the introduction of the UK’s Extended Producer Responsibility (EPR) packaging scheme adding to the burden.”

Ms Holohan acknowledged the difficulties facing the hospitality sector, stating: “We see how tough it is out there for outlets.”

She confirmed that alcohol duty increases would “absolutely be passed on”, though Asahi would seek efficiencies to mitigate rising costs where possible.