Punch Taverns ups drink prices by three per cent

Pubco Punch Taverns has revealed it is to increase its drinks prices to licensees by an average of 3.3 per cent.

Letters have been sent to 'Punch Partners' across the country explaining the decision to up prices.

Punch Partnerships managing director Roger Whiteside said: "Suppliers have recently announced increases of between two to 4.6 per cent 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 per cent.

"There will be no changes on products that have not received a wholesale price increase."

The pubco, which owns around 6,000 tenanted and leased pubs, said the move follows a smaller increase of just one per cent last year.

It also warned licensees to expect further increases with duty likely to go up at the Budget next month.

Punch also said it was providing support and advice to licensees, including tips for licensees to protect their margins.