Punch unveils "maximum" four per cent price hike

Punch Taverns, the UK's largest pubco, is hiking wholesale drinks prices by "a maximum" of four per cent at the end of this month.

Tenants and lessees have today received a letter informing them of the inflation-busting increases.

Punch says this will be the only price rise this year, aside from duty increases.

The increase will take effect on March 30.

Punch licensees greeted the news with weary resignation.

Dave Smith, licensee at the White Lion, in Colsterworth, Lincolnshire said he was not surprised by the increase.

"I suppose they are trying to get all the money up front," he said. "I hopefully won't have to put up my prices, as we're doing ok, but the majority will."

At the Marlborough Tavern, in Bath, Joe Cussens, said the rise was "what you'd expect". But he added: "It's not helping businesses that will have to put their prices up."

A statement from Punch said: "As part of our continued commitment to our licensees, Punch decided to delay passing on the wholesale beer price increases from February until the end of March.

"We have also restricted the overall price increase to four per cent when other companies are passing on six per cent, meaning that we are absorbing around two per cent of the increase.

"We firmly believe that this is an equitable and fair approach.

"We would also like to point out that we didn't pass on the wholesale price increased that the brewers introduced last September."