Pint price up 8p in 3 months

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Erosion of margins: cost of a pint of draught lager increased 1.3% between October 2022 and January 2023 (Credit: Getty/10'000 Hours)

The average cost of a pint of draught lager increased by 1.9% in the three months to January 2023, the latest data from the Office For National Statistics (ONS) has revealed.

Bitter also saw price increases between October 2022 and January 2023, rising by 0.8%.

The price of a pint of lager increased by 1.2% to £4.20 between October and November alone last year.

However, despite the overall increase of 8p between October and January, the price of a pint of draught lager came down from £4.24 in December last year to £4.23 in January 2023.

Damaging impact 

Similarly, while the cost of a pint of draught bitter increased by 3p overall between October and January, prices reduced from £3.60 in December 2022 to £3.57 in January 2023 after rising from £3.54 to £3.59 between October and November last year.

British Beer & Pub Association chief executive Emma McClarkin said: “After having faced almost three years of extremely tough trading conditions due to lockdowns, an energy crisis, and supply chain disruptions, the cost of doing business and erosion of margins is crippling our pubs and breweries at an unprecedented rate.

“We simply can’t afford to lose our local pubs and breweries, and the jobs and livelihoods that go with them. The last thing pubs want to do is put prices up for customers who are struggling themselves with the cost of living; they want to provide a warm and welcoming space for their communities, especially in this acutely difficult time.

“To offset the damaging impact of inflation on these businesses, we need confirmation there will be no increase in the headline rate of beer duty this year as well as a significant increase in the discount for draft beer in pubs and implementation of the previously announced reduced rate for lower-strength beers.”

This comes as previous data showed the average cost of a pint of draught lager and bitter saw the biggest year-on-year increases in a decade between October 2021 and October 22, rising by 6% and 8% respectively.

Make ends meet 

Additionally, BrewDog CEO James Watt last month warned if prices increased in line with energy costs a pint of the brand’s Punk IPA would cost £27.50 while UKHospitality chief executive Kate Nicholls last week stated inflationary pressures were “hindering” the sector.

The Campaign for Real Ale (CAMRA) National Chairman Nik Antona said: "With energy bills for businesses going through the roof and the cost of goods and employing staff rocketing too, pubs and the breweries that serve them have had no choice but to put up prices in order to make ends meet. 

"If the Government doesn’t use the Spring Budget to change its plans to slash help for pubs with energy costs from April, then we risk seeing further price hikes at the bar - or more pub closures. 

“That's why CAMRA is calling on the Chancellor to commit to keeping energy bill support for hospitality businesses at its current level beyond April, making the business rate system fairer for pubs, and cutting tax charged on draught beer and cider by 20% to help our locals compete with the likes of supermarket alcohol."