Shropshire Star

Costs catch up with drinkers as price of a pint rises by 45p at Marston's pubs

Beer prices are up by as much as 45p as the cost of living crisis escalates.

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Pub-goers have seen pint prices at the bar spiral – and have been warned there is more to come.

Drink prices in West Midland-based Marston’s restaurants and pubs have risen in recent days by between 20p and 45p.

They are also up by up to 20p a pint at Wetherspoon pubs – and small Midlands brewer Joule’s has today warned of big price rises down the line.

The level of increases varies between pub restaurants and drinkers’ pubs.

Some products have gone up by more than 45p and for others there has not been a rise.

The rises have not so far affected food prices at its chains that include Marston’s Two for One, Generous George, Milestone Rotisserie, Milestone Carvery and Pitcher & Piano.

Marston’s is not alone in the hospitality industry in raising prices with other factors impacting chains including supply chain issues.

Pubs face increased energy bills and they are paying more for delivery because of petrol and diesel costs. The price of malting barley, the most important ingredient for lager, has more than doubled in the past year, and there could be more pain to come.

A spokesman for Marston’s added: “The price increase is a direct impact of the soaring energy prices and operating costs as being experienced by all businesses and households across the country.”

The company has joined other brewery and pub groups in writing to the Chancellor, Rishi Sunak, asking for further financial help when he makes his Spring Statement to the Commons on Wednesday.

Marston’s is among those calling for the current 12.5 per cent VAT rate for food and drinks sold in the hospitality sector to be maintained.

Chief executive Andrew Andrea has previously warned that if the planned return to the full 20 per cent rate is implemented April, Marston’s might be compelled to increase prices in response.

The British Beer and Pub Association has also written to the Chancellor asking for financial help for pubs including extending the energy price cap to small businesses.

Pubs and bars are already trying to decide how much of additional expenses to pass on to customers who are being hit hard by rising costs of living including food and heating.

Input prices for UK makers of alcoholic drinks rose at an annual rate of 7.9 per cent in January, the fastest in a decade and prices of malting barley have more than doubled in the past year.

Emma McClarkin, chief executive of the BBPA, said price increases in pubs would give consumers who were still nervous about Covid another reason to avoid going out again.

Cheaper alcohol in supermarkets is another factor hitting pubs hard.

Marston’s, which operates an estate of around 1,500 pubs across the country and employs around 12,000 people, took a hit to sales as a result of the spread of the Omicron Covid-19 variant over Christmas.

Like-for-like sales fell sharply in the following eight weeks to January 22 as the virus spread – falling 8.8 per cent compared with the same period two years ago.

The group will release its next results for the half year on May 18.