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An article in The Publican states that beer sales are up 7.8% over the last six weeks compared to one year ago, according to the British Beer & Pub Association (BBPA). That’s an increase of nearly 60 million pints.
Communications director Mark Hasting attributes the increase to the hot summer and the World Cup. It’s also noted that the increase was generally in pints, especially cider, over alcopops.
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At least, that’s what Belgian megabrewer InBev is telling British pub operators.
According to a story by ProBrewer.com, a professional trade site for the brewing industry, an InBev spokesperson claimed that pub operators are loathe to bring their wares above a certain price point.
Steve Kitching, managing director of on-trade sales, said some pub managers treat beer “like petrol” and have a “price point ceiling in mind, which they are wary of breaching.”
“Traditionally, retail pricing was determined purely on margin terms based on retailers’ need to make a certain percentage profit,” Kitching. “Today it’s more about what consumers are willing to pay, but there is still some way to go.”
Of course, Mr. Kitching denied that his statements indicate a pending price jump. Coincidentally, InBev’s Stella Artois is the best-selling lager in the United Kingdom.
The article offers a counter argument from a gentleman named Steve Martin (no, not the American actor/comedian) who manages sales for a chain of pubs.
“In theory the principle is the right one,” Martin said. “However, the expectation of the customer paying more for their liquid may not work. Just look at off-trade volumes and off-trade prices.”
I agree with him. The single largest factor keeping me from spending more time in pubs is that the beer is so overwhemingly more expensive than I can get buying it retail. Sure, I miss out on all that atmosphere, but given a choice of hanging out in a bar drinking some beer, or hanging out on my deck, drinking the same beer at ⅓ the price, I know what I’ll usually pick.
Be warned, our British friends. You may have some price hikes on the horizon.
(via Brew-Monkey)
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