Prices are going to rocket due to a significant increase in grain prices because of shortages caused by Russia’s invasion of Ukraine, which is a major exporter of grain. This adds to pressure faced by brewers dealing with rising energy bills and hikes in National Insurance and the National Living Wage.
Patrick Dardis, chief executive of Young’s, told GB News that pub chains have been absorbing cost rises for the past six months and that another hike in prices is likely to be seen in September or October.
The current average price of a pint in a pub is £4.07.
Mr Dardis said: “Just to put it into perspective, if for example, the pub companies were to pass on all of the increases that we’ve had in the last six months, the price of a pint would have to rise by about 60 or 70 pence.
“The pub companies and the brewers are actually absorbing a significant amount of the cost pressures already seen.
“I think it may well see, unusually, a second price increase later down the road, in September, October.”
He made his comments on GB News’ On The Money program during an interview with host Liam Halligan.
Mr Dardis added that prices had already driven up pub prices.
“Unfortunately, it’s not just barley prices, but barley prices alone are driving prices up by – it can be as much as 30-40 pence a pint,” he said.
“If it was barley alone, we could probably accommodate a standard annual increase which may be about 10 to 15 pence a pint.
“But when you’ve got unprecedented cost increases, like energy over up 200 percent, the national living wage, National Insurance, pretty much every cost line of business operates at the moment are going up at least six percent.
“It’s a tsunami of cost increases that I have not seen in my 40 years in the sector.”
The price hike prediction is the latest in a string of warnings issued by breweries.
Roughly around a fifth of the global exports of barley come from Ukraine and prices for the key brewing ingredient have surged worldwide since war broke out in February.
The increase prompted a warning from Suffolk-based brewer Adnams who said customers should expect pint prices to go up later this year.
Fergus Fitzgerald, of Adnams, admitted: ‘When it comes to that next supply, that’s when we will start to see price increases.
‘The price of barley currently is around 30 percent higher than it would have been this time last year.
Last week, fellow brewer Marston’s reportedly confirmed they would be hiking prices of their pints due to ‘soaring energy prices and operating costs’.
The company, which has more than 1,500 pubs, said prices would be going up by as much as 45p in some parts of the UK.
It is the latest blow to British households in the midst of the worst cost of living crisis the country has seen in decades, created by soaring inflation, energy bills and fuel prices.