Information sent to on-trade customers, which has been seen by The MA, detailed Heineken will increase its draught wholesale selling price by an average of 2.97% from next month.
The cost of the firm’s wholesale packaged products will rise by an average of 2.5%, according to the information.
Heineken said the changes would be effective on all deliveries from Saturday 1 February 2025. The increases will be duty exclusive.
The global brewer stated it had made “considerable efforts” across its business to “deliver cost savings and drive efficiencies” in 2024 to “reduce the impact of inflation” for its customers.
Significant cost increases
However, Heineken explained changes to Government legislation set to come into effect this year would result in “significant cost increases” for the firm.
The firm added it believed the on trade should be “excluded from the impact of these additional costs”, but that, as it stands, it is included in the current regulations.
Alongside the price hike, Heineken said it would also be reducing the strength of its SOL brand to 3.4%.
It explained the move was in line with shifting consumer trends towards lower-strength products and its “strong commitment” to promoting responsible consumption.
The reformulated ABV product will be in production from 25 February and will result in a net price reduction from this date.
Major legislative changes
A spokesperson for Heineken told The MA: “We have informed our on-trade customers of a slight increase of 2.97%, on average, for the price of draught products, and 2.5% for packaged products.
“As ever, we continue to make considerable efforts across the business to deliver cost savings and drive efficiencies to keep price increases to a minimum, and reduce the impact of inflation on our customers.
“This year, there will be major legislative changes around Extended Producer Responsibility (EPR).
“The first stage of this is Packaging Recovery Notes (PRN) which increases Heineken UK’s responsibility for the fees from 37% to 100% - a considerable cost increase. The retail element of this has been included in the price increase.
“We encourage our customers to speak to their Heineken representative if they have any questions.”
- As January is typically the time suppliers increase their prices, The MA will be updating this story with details on further price hikes as information comes in.
