AB InBev confirms beer prices will rise this year

Beer giant AB InBev has confirmed it will raise prices across its entire portfolio thanks to “ongoing pressure” from the UK economy.

AB InBev, which owns brands Budweiser, Stella Artois, Corona, Beck’s and Hoegaarden, said it will increase the wholesale prices of its beers by 3.9% from 1 February 2018.

The price hike reflects “ongoing pressure in the beer industry and the UK economy,” AB InBev said in an emailed statement.

It added: “We always look to keep any increases to a minimum for our customers, maintaining an increase lower than the Retail Price Index (RPIX), despite this having more than doubled versus last year.”

The news comes as rival drinks firm Molson Coors, which produces Worthington and Carling, also announced it will also raise its prices by between 3-2.3%, according to the Morning Advertiser.

The price hike could mean an average pint of beer costs between 10 and 12p more compared to last year.

Back in September, AB InBev’s president of Northern Europe operations Jason warned that “there has to be an increase” on beer prices over the next two years.

“We are starting to see the real inflation rate of the UK coming through and for our retail partners they will see it across all categories,” he added.

Since August last year, UK inflation has increased by 3% while the Consumer Price Index, which measures changes in the prices of consumer goods and services, has also risen from 0.6% to 2.6% (July 2017.)