UK: InBev UK asks British pubs to increase beer price

InBev UK said to British pub operators they should increase beer prices because consumers are willing to pay more, media released July 18.

Steve Kitching, managing director on-trade sales at InBev UK, said some pub managers treat beer "like petrol" and have a "price point ceiling in mind, which they are wary of breaching."

An InBev spokeswoman denied his statements forecast the brewing company is about to raise prices. InBev's Stella Artois is the top-selling lager in the UK.

Kitching added: "Traditionally, retail pricing was determined purely on margin terms based on retailers' need to make a certain percentage profit. Presently it's more about what consumers are willing to pay, but there is still some way to go."

Steve Kitching suggested progressive prices for beers with higher margins.

Steve Martin, who managed beer sales for the Punch Taverns chain, said Kitching was not taking into account the popularity of cheap prices in supermarkets. He added: "In theory the principle is the right one," Martin said. "However, the expectation of the customer paying more for their liquid may not work. Just look at off-trade volumes and off-trade prices."

18 July, 2006