Stonegate to hike price of beer by 4% this week
Stonegate Group, responsible for venues including the Slug & Lettuce, Walkabout and Popworld, is hiking the price of its beer by 4%. The post Stonegate to hike price of beer by 4% this week appeared first on The Drinks Business.
Stonegate Group, responsible for venues including the Slug & Lettuce, Walkabout and Popworld, is hiking the price of its beer by 4%.
Originally formed in 2010 with 333 pubs, Stonegate is now the largest pub company in the UK following 12 major acquisitions. Its vast portfolio is now home to over 4,500 sites and yet its publicans are now having to implement price increases from 2 May, running the risk of putting off punters.
Drinkers will likely be adding an extra 15-20 pence onto drinks. For example, a pint like Hofbräu Original Lager that would usually cost £5.50, will soon purportedly cost £5.75. Similarly, the Thistly Cross Traditional Sparkling Apple Cider that would usually sell at £5, is set to increase to £5.20.
According to the national press, the move has sparked outrage among publicans, who say they’re already drowning in rising costs and rent increases. In response to this, the pub company has said it has little choice since it is already navigating rising energy bills, staff wages and licensing costs.
Speaking about the situation, a spokesman for Stonegate Group told db: "Our annual price review this year reflects the significant cost pressures and challenges faced by our sector over the last 12 months. We are absolutely committed to supporting our publicans, enabling them to continue to play the vital role in the communities they serve."
Despite this, the rise in prices coincides with the government’s controversial National Insurance hike which kicked in earlier this month, hitting hospitality businesses while they were already facing challenges.
Employers now pay NICs at 15%, up from 13.8%, and the threshold was slashed from £9,100 to £5,000 in a move that is reportedly expected to raise £25 billion for the Treasury.
The British Beer and Pub Association (BBPA) has additionally warned this could push the average pint price past the £5 mark, climbing from £4.80 to £5.01 with Stonegate’s 4% hike only adding to cost-associated pressures squashing the sector.
BBPA chief executive Emma McClarkin said: “No one wants to see the cost of an average pint increase by a further 21p and break the £5 average pint barrier that will be required for pubs to maintain their punishingly slim profit margins.”
McClarkin explained that it is “more urgent than ever” that the government looks at ways to cap or reduce the cost of doing business so that Britain can keep its pubs open and preserve their community value as well as ensure that the price of a pint remains affordable for all.
Irrespective of the outcries, several chains have already been forced to put their prices up to cope with the situation they find themselves in. For instance, Wetherspoons recently hiked the price of some of its drinks and meal deals by up to 30p. Young’s added 20p per pint, Mitchells and Butlers upped its prices by 15p, while both Fuller’s and Marston’s pubs hiked prices by 10p.
Chancellor Rachel Reeves has insisted that the changes were put in place to protect workers, but economists are now reportedly saying that it is punters who end up footing the bill, even though many businesses are forced to pass on costs to survive. Back in February, the increases in alcohol duty rates had already forced many pubs to increase their rates, passing the rise to customers.
Another blow to pubs of late has been the new waste packaging tax which was also introduced earlier this month and has meant products sold in glass bottles could rise by 10p, forcing pub owners to offset the costs onto consumers.
db has reached out to Stonegate for further comments on the price hikes and its plans to navigate the headwinds the sector is currently facing.
Originally formed in 2010 with 333 pubs, Stonegate is now the largest pub company in the UK following 12 major acquisitions. Its vast portfolio is now home to over 4,500 sites and yet its publicans are now having to implement price increases from 2 May, running the risk of putting off punters.
Drinkers will likely be adding an extra 15-20 pence onto drinks. For example, a pint like Hofbräu Original Lager that would usually cost £5.50, will soon purportedly cost £5.75. Similarly, the Thistly Cross Traditional Sparkling Apple Cider that would usually sell at £5, is set to increase to £5.20.
According to the national press, the move has sparked outrage among publicans, who say they’re already drowning in rising costs and rent increases. In response to this, the pub company has said it has little choice since it is already navigating rising energy bills, staff wages and licensing costs.
Speaking about the situation, a spokesman for Stonegate Group told db: "Our annual price review this year reflects the significant cost pressures and challenges faced by our sector over the last 12 months. We are absolutely committed to supporting our publicans, enabling them to continue to play the vital role in the communities they serve."
Despite this, the rise in prices coincides with the government’s controversial National Insurance hike which kicked in earlier this month, hitting hospitality businesses while they were already facing challenges.
Employers now pay NICs at 15%, up from 13.8%, and the threshold was slashed from £9,100 to £5,000 in a move that is reportedly expected to raise £25 billion for the Treasury.
The British Beer and Pub Association (BBPA) has additionally warned this could push the average pint price past the £5 mark, climbing from £4.80 to £5.01 with Stonegate’s 4% hike only adding to cost-associated pressures squashing the sector.
BBPA chief executive Emma McClarkin said: “No one wants to see the cost of an average pint increase by a further 21p and break the £5 average pint barrier that will be required for pubs to maintain their punishingly slim profit margins.”
McClarkin explained that it is “more urgent than ever” that the government looks at ways to cap or reduce the cost of doing business so that Britain can keep its pubs open and preserve their community value as well as ensure that the price of a pint remains affordable for all.
Irrespective of the outcries, several chains have already been forced to put their prices up to cope with the situation they find themselves in. For instance, Wetherspoons recently hiked the price of some of its drinks and meal deals by up to 30p. Young’s added 20p per pint, Mitchells and Butlers upped its prices by 15p, while both Fuller’s and Marston’s pubs hiked prices by 10p.
Chancellor Rachel Reeves has insisted that the changes were put in place to protect workers, but economists are now reportedly saying that it is punters who end up footing the bill, even though many businesses are forced to pass on costs to survive. Back in February, the increases in alcohol duty rates had already forced many pubs to increase their rates, passing the rise to customers.
Another blow to pubs of late has been the new waste packaging tax which was also introduced earlier this month and has meant products sold in glass bottles could rise by 10p, forcing pub owners to offset the costs onto consumers.
db has reached out to Stonegate for further comments on the price hikes and its plans to navigate the headwinds the sector is currently facing. 
