The founder of Cobra beer Lord Bilimoria said the business was facing a “vicious cycle” of surging costs. Speaking to BBC 5 Live’s Wake up to Money programme he said: “Our input costs in every way – bottling, energy – are up. Freight costs have soared, sometimes ten-times. Wages are increasing and on top of that there are labour shortages.
Although he wouldn’t give a figure on what price hikes might look like he warned they would be “a necessity.”
He added: “It does mean that businesses have to put up prices.
“But the consumer is already feeling the squeeze.
“It is a really challenging situation for everyone.”
Fergus Fitzgerald, Head of Production at brewer Adnams, told Express.co.uk price rises would vary by pub and brewery but could be expected in be in line with inflation, between five to seven percent.
Last week the Danish brewer reported it was looking to offset increased production costs by raising prices, though it admitted this could have a “negative impact on beer consumption.”
A recent report on the beer industry by market research firm Mintel found 64 percent of drinkers reporting pub and bar prices as being off-putting.
The concerns were recognised by Adnams with Mr Fitzgerald explaining supermarket sales would be increasingly important to brewers as some of the drinking from home trends since the pandemic continued amid the rising cost of living.
In recent weeks it was reported drinkers may see price rises of as much as 50p a pint in UK pubs with chair of the City Pub Company Clive Watson giving a similar figure of 40-50p.
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Among the cost pressures facing UK brewers is a planned rise in National Insurance in April which will increase wage bills.
Lord Bilimoria has opposed this saying it is coming at “the wrong time” and “will stifle growth.”
Beyond brewing there have been further price rise warnings from the food and drinks sector with chair of Tesco John Allen warning on Sunday that food price inflation was set to rise further.
Speaking to the BBC he said supermarket prices could rise as much as five percent by the spring, adding that inflation at Tesco had been kept at around one percent.