Enterprise & Punch hike drinks prices
Enterprise Inns is to increase its drinks prices by an average of 3.8% to its tenants while Punch Taverns is to pass on an average 3.3% increase — meaning licensees face having to increase prices three times in three months.
The increases come on the back of price rises by the major brewers recently announced — Carlsberg (3.5%), Heineken (3.6%), Coors (2.3%) and Diageo 5%.
Tenants have already had to factor in a VAT increase in January with a 2% above inflation duty increase expected to follow in the March budget.
Enterprise's increase follows a 3.5% increase last year, while Punch did hold rises to 1% last year.
In a letter to tenants, Enterprise chief operating officer Simon Townsend said: "As in previous years, we have sought to keep the number and variety of percentage increases as low as possible and below the current Retail Price Index inflation figure at 4.8% (December 2010) and I can therefore confirm the average increase in Enterprise Selling Price for 2011 is approximately 3.8%."
Farcical
One Enterprise tenant, who wished to remain anonymous, said the increase was "farcical".
"It is an absolute joke. Why do it now when we have just had a VAT increase with a duty increase to follow in March."
He added: "This increase almost certainly leaves Enterprise making an increased margin between wholesale price and what they pay. If this is not the case they should sack those negotiating on their behalf."
Wholesale increases
Meanwhile, Punch said it had tried to limit price rises where it could, citing the example of a 3.8% increase on Bulmers, which had seen a wholesale increase of 4.9%.
Punch Partnerships managing director Roger Whiteside said: "Suppliers have recently announced increases of between 2-4.6% on key draught products.
"In light of these we have reviewed our prices to Partners and decided to increase discounts in order to restrict net price increases to an average of 3.3%. There will be no changes on products that have not received a wholesale price increase."
It has advised tenants to factor in the planned duty increase in the Budget before increasing prices.
• Has your pubco increased its prices? Let us know by emailing Ewan.Turney@william-reed.co.uk.
