Admiral absorbs second price rise

Admiral Taverns has opted not to pass on to tenants the second wholesale price rises announced by four major brewers this year.

In a letter to Admiral licensees this week, commercial manager Simon Eyles said current wholesale prices for tenants will not change in 2008. A decision on increases will be taken in the New Year.

Carlsberg, Coors, InBev and Marston's have all taken the unusual decision of announcing a second wholesale price increase for 2008, citing soaring costs of energy and raw materials. The increases are due to hit in September and October.

Eyles's letter, seen by the MA, says: "You may have read in the press about some extraordinary increases to the prices of many drinks brands, announced by several leading suppliers.

"Carlsberg, Coors, Inbev and Marston's have made announcements in September and there may be other drinks brand owners making similar announcements in the coming weeks.

"Admiral Taverns will be incurring extraordinary cost increases announced by suppliers. However, we have decided to defer the increases due on wholesale prices to Admiral tenants and lessees for the remainder of 2008.

"We will monitor market conditions and the trading circumstances of our licensees and review the situation on an ongoing basis."