How Rising Alcohol Prices Impact UK Pubs & Hospitality

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Rising Alcohol Prices Impact

As 2025 unfolds, UK drink venue owners are facing a series of challenges brought about by rising alcohol prices. From increased alcohol duties to new packaging regulations, there’s a “perfect storm” of changes reshaping the landscape for bars, pubs, and restaurants. With suppliers like Primo Drinks passing on price increases, venues need to be proactive in managing costs and adjusting their strategies to maintain profitability.

In this blog, we’ll break down the key price adjustments, highlight popular products to watch, and offer actionable tips to help you navigate these changes.

Upcoming Duty Changes: The Ripple Effect on Pricing

On February 1, 2025, the UK government implemented a significant increase in alcohol duties after several years of freezes. These adjustments will directly affect the price of beer, spirits, and wine. According to The Scottish Sun, this rise in alcohol duty rates is part of a broader government strategy to raise more revenue from alcohol sales. While some pubs may try to absorb these costs, many will likely pass them on to consumers in the form of higher drink prices.

In response to the duty increase, Heineken has announced a 2.97% price increase for its draught beer, as reported by The Sun. This move reflects the broader industry trend of adjusting prices to offset increased production costs.

While these price hikes are largely driven by government policy, pub owners need to understand how they will impact their stock choices. You may need to review your current inventory and decide whether certain products still offer the best value for your venue.

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Key Lager and Ale Products to Watch

Here’s a closer look at some of the most popular lager, ale, and cider options, along with their expected price changes:

Draught Lager:

  • Amstel Keg 50L
  • Moretti Keg 50L

Both Amstel and Moretti offer solid value. While their prices are slightly reduced ahead of duty changes, they will rise slightly in February.

Draught Craft:

  • Brixton Atlantic APA Keg 30L
  • Beavertown Bones Keg

These craft beers are relatively stable in price, but keep an eye on duty shifts, which may affect their future pricing.

Draught Ales & Stouts:

  • John Smiths Extra Smooth Keg 100L
  • Doom Bar Bitter Cask

Traditional ales like these will see modest duty increases, but their prices should remain manageable. For pubs focusing on classic offerings, these may still be staple items.

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Packaged Options: Assessing the Impact of Duty on Retail Prices

Packaged beers and ciders are another area where price changes will be felt. For instance:

  • B Moretti Can 4x6x330ml
  • Desperados Can 2x10x330ml

These price increases are especially relevant for retail and takeaway sales. For pub owners, balancing between keg and can options may be essential to keeping costs in check without sacrificing quality.

Ciders: A Growing Category with Dynamic Pricing

Ciders are increasingly popular in the UK, and many brands will experience price changes as well. Notable examples include:

  • Orchard Thieves Apple 8L Blade: Minimal price increase.
  • Aspall 500ml: Prices remain relatively stable.

If your venue is a strong contender in the cider market, staying on top of these shifts will be crucial for maintaining a competitive edge in your pricing strategy.

Heineken UK

  • Amstel 50L Keg: slight reduction pre-February, expected increase post-duty changes.
  • Birra Moretti 50L Keg: similar trend as Amstel, lower price ahead of duty increases.
  • Orchard Thieves Apple (8L Blade): Price remains stable.

Other Key Brands Affected:

  • Heineken’s draught beer range is expected to see duty-driven increases across other popular lines, but specific packaged product details are pending.

CMBC (Carlsberg Marston’s Brewing Company)

  • Carling 50L Keg: increased after February 1st, 2025.
  • Carling 500ml Cans (6×4): increased after February 1st, 2025.
  • Doom Bar Bitter (Cask): Small increase but remains a staple.
  • Tetley’s Cask Ales: Slight price increases are expected but within manageable ranges.

Other Key Brands Affected:

  • CMBC has indicated across-the-board increases due to new alcohol duty and packaging responsibilities.

Molson Coors

  • Coors Light 50L Keg: Expected price adjustment post-duty changes; details forthcoming.
  • Madri Excepcional 50L Keg: Stable pricing is reported for now, but an increase is anticipated after February.

Other Key Brands Affected:

  • Molson Coors also handles Staropramen and Blue Moon, both of which are predicted to experience minor price adjustments.

BBG (Beers, Wines, and Spirits Distributor)

  • Brixton Atlantic APA (30L Keg): Pricing remains relatively stable, with minimal increases tied to duty changes.
  • Beavertown Bones (30L Keg): Similar stability as Brixton, though future adjustments are possible.
  • Innis & Gunn Craft Beers: Slight increases but retain competitive pricing for the premium craft beer segment.

Other Key Brands Affected:

  • BBG’s broader portfolio includes a mix of imported and local craft options, many of which have seen minor adjustments in response to packaging and duty changes.

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Ensure your venue is stocked with the best-selling draught lagers. Contact Primo Drinks today to place an order and keep your customers coming back for their favourite pints!

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