Large wholesale price increases could be witnessed in the beer industry as input costs rise, Coors Brewers has said.
From 29 September, the company revealed that a wholesale 3p per pint rise will be seen across all channels and that it is written to customers in the on and off-trades to tell them.
Chief executive at Coors Mark Hunter said that for a while it was possible to absorb the costs but that this is no longer viable.
He remarked: “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.”
Coors said that the Producer Price Index – something that looks at the price rises on goods bought between manufacturers – has grown from 8.9% in February this year to stand at 30% today.
