Drop in pound could push up price of pint, brewery bosses warn

The pound fell to a record-low against the dollar on Monday morning

Many hops used by UK brewers are imported (Carlsberg Marston’s Brewing Company/PA) (PA Media)

The fall of the pound could cause a rise in the price of a pint, warns breweries.

Paul Davies, chief executive officer of the Carlsberg Marston’s Brewing Company, said the pound’s drop to a record low was “worrying” for the beer sector.

The pound fell to its lowest level against the US dollar since 1971 on Monday morning, with experts warning the drop could cause the price of goods to rise and worsen the current cost-of-living crisis.

Products imported into the UK, such as those used by the food and drink industry, could become more expensive and lead to price increases for customers.

Speaking to BBC Radio 4’s Today programme, Mr Davies said that the fall of the pound was “worrying” for the British beer industry and its imports.

He said: “Many of the hops used in this country are actually imported and a lot of them, particularly for craft brewers, are imported from the States.

Experts warn the drop could cause the price of goods to rise and worsen the current cost-of-living crisis (AFP via Getty Images)

“Changes in currency is actually worrying for industry, and then of course people drink a lot of imported beers from Europe, and the euro versus the pound is also something we’re watching very closely at the moment.”

The pound also fell against the euro on Monday morning by around six per cent over the past month.

When asked about potential price increases, Mr Davies said: “Of course, things will rise.

“I would say as an industry we’re generally using British barley and we’re using a lot of British hops, but of course, if you’re drinking double IPA that requires a lot of Citra hop and other hops from the States, at some point that is going to have to be passed through to both the customer and the consumer if prices are this volatile.”

Experts say grocery inflation increased by 12.4 per cent in August as the food and drink industry had already come under pressure from energy cost increases.

Giles Hurley, chief executive officer of Aldi, said currency value could impact its product supply but it was “too early” to say if it would result in higher prices.

“Around 75 per cent of what we sell comes from the British Isles so we are somewhat protected,” he said.

“We are insulated through longer-term agreements as well but do have products, such as general merchandise from Asia, which is bought in dollars from Asia.

“Right now though, we are looking to understand what any impact would be but think it is too early to say what might happen.”