Greene King hiking prices by more than 4%
In an email seen by The Morning Advertiser, Greene King stated it would be increasing wholesale prices for draught beer and cider, on average by 4.7%.
This rise, which will be implemented from Sunday 12 June, is as a result of high levels of inflation across all aspects of the business and industry.
Prices for wines, spirits and minerals will also be changed, which Greene King stated was the first time since 2019, with rises in line with market rates being implemented.
Range of rises
However, it is understood packaged beer and cider prices will not change.
A Greene King spokesperson said: "Like all hospitality businesses, we’re seeing significant inflation across our industry with rising energy prices contributing to significant cost pressures in supply chains. Supporting our partners is our number one priority and while we’re absorbing costs ourselves, we have also written to our partners to notify them of our intention to apply annual price changes from 12 June.
"Our success and our partners’ success is mutual, which is why we will continue to help our partners to grow and develop their businesses with wide ranging business support and guidance.”
The sector is currently facing a plethora of hikes in prices across the board. Operators have reported increases in cooking oil costs, with many looking at alternative ways to mitigate the rise.
Owner of the Unruly Pig in Bromeswell, Suffolk Brendan Padfield said among operators, there had been huge “consternation and exasperation” at the inflated costs of oil, which he described as “at least a plague on everyone’s house”.
Furthermore, the trade was also warned the cost of fish could continue to soar as a result of the post-pandemic inflation.
According to the National Federation of Fish Friers, pubs need to prepare for the future now as the cost of the nation’s favourite dish, according to a recent YouGov survey, is expected to increase further as fuel prices rocket and sanctions and tariffs on Russian products continue amid the country’s invasion of Ukraine.
Ongoing increases
This followed a caution from Bank of England boss Andrew Bailey, who predicted “apocalyptic” price hikes in food as homes are hit by a “very real income shock”.
He told MPs a series of external shocks including Russia’s invasion of Ukraine and supply chain issues due to lockdowns in China were driving inflation rises.
Office of National Statistics chief economist previously warned prices soared by 7% in the 12 months to March 2022 – the fastest rate for three decades and up from 6.2% in February.
Bailey said Ukraine, which is one of the globe’s major wheat and cooking oil producers, was struggling to export food while the conflict continued.
