24/01/2011 - Beer may become 10% more expensive
A pint of beer could increase in price by 10% as drinks firms pass on the expense of the rise in both VAT and the cost of barley.
An article in The Grocer trade magazine said beer will be between 4.25% and 6.5% more expensive this year, and that's just down to a rise in the duty escalator which is linked to the rate of inflation plus 2%.
The magazine pointed out that the Government ignored the cost of ingredients, packaging and distribution when doing its calculations. In 2010 the cost of diesel went up 35%, cardboard was up 35% and brewing-related ingredients such as wheat and barley increased by almost 100%.
British-grown barley, the cost of which rose 90% last year, will be made even more expensive during 2011. Global barley production rates are predicted to fall by 43% compared with 2010.
Campaigners criticised the Government's announcement this week to ban the sale of alcohol below cost price, saying it would not go far enough to resolve the problem of binge-drinking.
The ban was put forward as part of efforts to tackle alcohol-related crime and disorder which is said to cost the taxpayer around £13 billion a year.
Copyright © Press Association 2011
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