A SCOTTISH beer brand has warned the average price of a pint could exceed £7 "as the norm" in some cities.
Alan Mahon, founder and chief executive of purpose-driven UK brewer Brewgooder, said spiralling production costs driven by the conflict in Ukraine, currency and duty challenges, and soaring inflation had created a serious concerns for the industry, made worse by the scrapping of a freeze on alcohol duty announced by Chancellor Jeremy Hunt earlier this month.
Mr Mahon said the price of raw ingredients including wheat and barley are rising well in excess of the rate of inflation, adding other key "unseen" materials – such as energy and gas – have hit high levels, with carbon dioxide now costing 3,000% more than it did this time last year.
Despite these significant headwinds, Mr Mahon said that Glasgow-based Brewgooder, whose customers include Morrisons, Asda, and the Co-op, as well as on-trade customer such as the Gleneagles Hotel, would be continuing to honour all of its ongoing commitments to supporting good causes, with almost £100,000 set to be donated to its charity partners in 2022.
Impact made will include support for food bank initiatives based in the UK, and the funding of clean water projects in multiple countries worldwide via impact partner Charity Water.
As inflation and instability and rising energy prices put the squeeze on people's pay packets, Mr Mahon said the pub and brewing industry could find conditions tougher than during the Covid-19 lockdowns unless the public show their support for the trade in the coming months – as well as the government.
He said: “From what we are seeing, the pressures on the industry with cost price inflation challenges and the Chancellor's scrapping of the alcohol duty freeze might make a £7 pint the norm rather than the exception in many places – particularly in bigger cities. This is bound to make a pint a relative luxury for a lot of people, something we should all be concerned about and force us all to take stock of the challenges facing the beer industry.
“Footfall to the on-trade has definitely been one of the biggest challenges facing the industry, with consumers having to make difficult choices on where to spend their money. A potential bright spot for the industry might be the winter World Cup rolling into the Christmas season providing a double shot in the arm for venues.
“It is therefore vital the industry and brewers continue to work hard on ensuring that the pub environment is something that cannot simply be re-created at home – whether that be through beers only available in the pub, or in encouraging people to socialise and meet friends for a drink/something to eat through various marketing or promotional platforms."
CR Smith says outlook holding up despite uncertainty
DEMAND for new windows and doors at CR Smith has yet to be dampened by difficult economic conditions as the Scottish home improvement group has benefitted from the demise of market rivals.
Director George Eadie said sales volumes in the current year are marginally higher than in 2021, when CR Smith Glaziers recorded a 10 per cent increase in profit as it emerged from closures enforced by Covid lockdown restrictions.
Executive search firm Norman Broadbent aims to ‘disrupt’ with Scottish offices
NORMAN Broadbent Group, which describes itself as the “oldest UK-headquartered” executive search firm and was founded in 1979, is targeting growth in Scotland with the opening of its first offices north of the Border.
The firm, which set up shop in Aberdeen in September and Edinburgh this month, declared its ambition to “disrupt the Scottish market in an impactful way”.
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