Inbev hit by cost increases

08 August, 2008

In bev UK has reviewed its wholesale pricing because of what it describes as "large cost increases", including steep rises in energy, packaging and transport bills.

The average price increase will be 3.3%, effective on draught and packaged products from Sept 15, 2008.

Stuart MacFarlane, president of In bev UK & Ireland, said: "We have made every effort to absorb rising costs but the sheer size of increases we have faced in recent months, and the fact that we are seeing further rises across virtually every element of our business, means

we now reluctantly have to pass on some of these increases to customers.

"We are committed to being as efficient a producer as possible, in terms of our operating overheads, and will continue to focus on cutting costs across the business.

"We are at the same time continuing to invest heavily in our leading portfolio of brands.

"However, the fact remains that the brewing process is a very heavy user of energy, so rises have an immediate impact on the price of producing a pint - particularly so given the scale of the increases we have had to cope with this year.

"I cannot remember a time when so many major cost increases have come through so consistently across virtually every aspect of our business."

So far other major brewers have not followed suit.

Gareth Roberts, head of media at Carlsberg UK, said: "As an industry we are facing unprecedented rises in costs across distribution, raw materials and the full range of utilities.

"Whil e we have no plans at this moment in time, we will continue to monitor

the situation over the forthcoming months."

A spokeswoman for Coors said the brewer was not planning any price increases in the short term.

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