Heineken hikes UK prices for draught beer by 16 percent and above inflation

United Kingdom | Publicans and punters were in for a bad surprise. Heineken confirmed that, as of 16 January, it would charge 15.8 percent more per keg on average.

UK media reported that Heineken, which owns more than 2,400 pubs in the UK, has raised its beer and cider prices. Brands including Foster’s, Strongbow, Amstel, and Birra Moretti are set to be affected.

The brewery blamed the move on “unprecedented cost increases” hitting its business. It comes amid a backdrop of soaring inflation and higher energy costs.

The rise could hit drinkers if publicans choose to pass on the wholesale price hike. If they do, then drinkers face paying more for pints and bottles sold in the pub, as well as bottled and canned beers sold in supermarkets.

The UK’s Consumer Prices Index rose 9.2 percent in the 12 months to December 2022, down from 9.3 percent in November.

Heineken also announced a new keg surcharge for the popular Birra Moretti brand at GBP 1.20 (USD 1.50) per 50 litre keg and GBP 0.84 per 30 litre keg.

A spokesperson for Heineken was quoted as saying: “Like many UK manufacturers, Heineken UK is facing unprecedented cost increases on a number of critical inputs used to make beer and cider. This is predominantly driven by the significant rise in energy prices, which is also having a dramatic impact on the costs of other goods including glass, aluminium, and malted barley.”

Fiddling with Foster’s alcohol content

On top of the price increase, Heineken is also reducing the alcohol content in Foster’s beer, from 4 percent to 3.7 percent ABV. It claims this is because more of its customers are choosing a “healthy lifestyle”.

More likely, Heineken seeks to save on excise. Priced as a mainstream brand, Foster’s was the second best-selling lager behind Carling in 2022, with volume sales coming in at 1.1 million hl, the Morning Advertiser, a trade publication, reported.