Heineken slaps 4p on a pint of beer

Britain's biggest brewer Heineken has announced a 4p a pint increase on the wholesale price of beer and 5p on a pint of cider. The price rise on...

Britain's biggest brewer Heineken has announced a 4p a pint increase on the wholesale price of beer and 5p on a pint of cider.

The price rise on beer, which comes into effect on Monday 1 February, adds £11 to the wholesale cost of a brewer's barrel.

For cider the cost of a brewer's barrel goes up by £15 and it comes into effect on 11 January.

The rises are all duty exclusive and equate to a 3.8% increase on beer and 4% on cider.

The rises apply to both draught and packaged products.

A Morning Advertiser survey revealed that most licensees were expecting to have to add between 6-10p to a pint following the 2.5% VAT increase on 1 January (Beer to rise 10p after festive sales drop).

However, a spokesman for Heineken revealed that there would be a "double digit percentage increase" in the amount spent in support of brands through the year.

Increased investment in its brands includes a re-run of its Australia Day promotion for Fosters, the first John Smiths TV ads to appear in five years and a new racing promotion giving John Smiths drinkers the chance to buy a share in a racehorse called Smithy.

Heineken is also expected to announce details of a football promotion timed to coincide with the World Cup in the summer.