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Price hikes hit retailers.
(From Off Licence News)
Byline: Rebecca Evans
Independent retailers are likely to be the hardest hit by drinks suppliers' above-inflation price hikes this year.
Many suppliers - facing spiralling costs in raw materials and utilities - will seek to raise prices in annual negotiations with retailers and wholesalers .
Constellation-owned Gaymer Cider Company is currently negotiating price increases of up to 10 per cent with its customers . Managing director John Mills said the cost pressures the company faces are "horrendous - the worst I can remember in 20 years". The price of oil and plastic packaging, sugar and apple juice concentrate have all rocketed - with concentrate tripling in price - over the past year, Mills added. He said: "We will be increasing our prices to our customers. The amounts will be slightly different depending on the discussion, but will be in the 5 -8 per cent range . There will also be some at 2 and 10 per cent. It will be way ahead of inflation." Coors said it is "facing very severe price pressure on a whole range of raw materials - hops, barley, metal and energy - and while we take every step to absorb price inflation, inevitably it will pass into wholesale prices in the coming months." Marston's Beer Company national sales director Steve Benton has not ruled out increases, citing rising costs "including a 70 per cent increase in malt costs, 40 per cent increase in the cost of sugar and 40 per cent increase in the cost of hops, which are all out of our control". Marston's would work to "ensure sustainable business and best possible pricing for our customers, the consumers and our ...
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