Licensee slams Punch Taverns over Strongbow price rise

07-Mar-2013 - Last updated on 07-Mar-2013 at 08:44 GMT

Price concerns: Phil Rice, of the Old Wheatsheaf in Enfield, Middlesex, doesn't understand cost of Strongbow at his pub

Punch Taverns has come under fire from one of its licensees after it increased the price of Strongbow for his pub by the equivalent of 19p per pint (22p a pint including VAT).

Phil Rice, of the Old Wheatsheaf in Enfield, Middlesex, said he does not understand why Punch has put up the price of Strongbow by £16.14 per barrel to £133.53, and believes his customers deserve an explanation.

Punch Taverns said in a letter to Rice that it had decided to increase prices in line with the major drinks suppliers’ wholesale prices from 18 February.

However, Rice has queried a price increase of 22p per pint on Strongbow after Heineken said its wholesale price rise for the cider amounted to approximately 5.5p per pint (7p per pint including VAT).

“I have no problem with the standard price increase from Punch — all our costs are going up, so a few pence per pint is understandable, even for my customers,” said Rice.

“But the price of Strongbow has gone up by the equivalent of 22p per pint.

“We have got customers who are quite loyal to Strongbow and by the time that 19p gets VAT and duty lumped on top, it amounts to about a 30p per pint rise.

“We are supposed to be partners; what I’d like to understand is the reason behind the price increase, not only for my benefit, but also that of my customers.”

A Punch spokesman said: “We have a policy of not commenting publicly on pricing involving individual pubs.

“However, we recognise the huge opportunity presented by the growth of cider and especially the breadth of new entrants into the market. We have been working with our suppliers to offer a broad range of well supported ciders at competitive prices to the market leaders.

“The details of this initiative are being finalised and will be communicated to our partners over the next few weeks.”