A SCOTTISH brewer has warned the £7 pint will be “the norm rather than the exception” in many places, as the costs of some supplies rise 3,000 per cent in a year.

Alan Mahon, founder and chief executive of the purpose-driven brewer Brewgooder, called on government and the public to support the struggling sector.

One hospitality industry representative said the Scottish Government and Westminster should move to bring in support measures, adding: “We cannot allow the licensed trade to die.”

Mr Mahon said the industry is being battered by spiralling production costs driven by the conflict in Ukraine, currency and duty challenges, and soaring inflation.

This was made worse by the scrapping of a freeze on alcohol duty announced by Chancellor Jeremy Hunt earlier this month.

Scottish wholesaler Dunns Food and Drinks said prices from brewers have gone up twice this year, and the Scottish Licensed Trade Association said “everyone is suffering”.

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Mr Mahon said that despite the significant headwinds, the Glasgow-based brewer, whose customers include Morrisons, Asda, and the Co-op, as well as on-trade customers 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.

The 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 partner Charity Water.

Mr Mahon said the pub and brewing industry could find conditions tougher than during the Covid-19 lockdowns but believes the industry must also seek to elevate the hospitality experience into something consumers cannot recreate at home.

“On the brewery side, raw material prices for the likes of wheat and barley are rising faster than the average rate of inflation, and consumers can perhaps understand that,” said Mr Mahon.

The Herald: Alan Mahon said , raw material prices for the likes of wheat and barley are rising faster than the average rate of inflation.Alan Mahon said , raw material prices for the likes of wheat and barley are rising faster than the average rate of inflation. (Image: Brewgooder)

“What is less visible but equally as important is the things that don’t often come to drinkers mind when they think of what goes into beer, such as the eye-watering explosion in carbon dioxide prices which is 3,000% higher than 12 months ago, on top of soaring energy prices, a pain everyone is feeling right now.

“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.”

He said that it is “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 or something to eat through various marketing or promotional platforms”.

He said: “It’s important for the public and the government to recognise their efforts with support in the coming few months.”

The Herald: Jim Rowan said brewers expect a further rise of at least 50p a pint before the end of the year.Jim Rowan said brewers expect a further rise of at least 50p a pint before the end of the year.

Jim Rowan, managing director at Dunns, which serves more than 4,000 hospitality customers across Scotland, said brewers predicted a further rise of at least 50p a pint before the end of the year.

He said: “Prices from brewers have gone up twice this year so on average we expect a pint of lager to go up by as much as 50p per pint. Premium beer by more. 

“Pubs have been passing these increases on to the public and, so far, the consumer has been understanding. Like all products there is a glass ceiling which generally you can’t go through."

He said: “It used to be £5 per pint, now it’s £6. £7 per pint in some cities is now in sight.”

Paul Waterson, spokesman for the SLTA, said: “We agree 100% with Alan Mahon. It’s absolutely vital that both the Scottish and UK governments step in and take on board what we are saying.

“Yes, we have the traditionally busy festive period coming up and also the World Cup which offer a glimmer of hope for hard-pressed businesses but we already have evidence that some people are cancelling Christmas bookings.

“Business owners are worried, there’s no doubt about it, but it’s also the wider impact of the cost-of-living crisis on the general public, the people who use pubs and restaurants. While their costs go up at home, so too do the costs of producers and wholesalers. Everyone is suffering.

"We cannot allow the licensed trade to die. The battle is on to save it because if we don’t get help there won’t be a licensed trade.”