A leading brewer has warned that the price of a pint of beer is set to get even more expensive by Christmas as Russia’s invasion of Ukraine sends barley costs spiralling by almost a third.
Brewer and pub operator Adnams made the warning and said a surge in the price of barley, which is key to the brewing process, in response to the war in Ukraine meant it was on track to push prices up for customers later this year.
Ukraine typically accounts for just under a fifth of global exports of barley.
Adnams sources its barley from the UK, but global shortages are sending costs higher across supply chains. For now, many brewers have enough stocks of barley, but will be buying more later this year.
Fergus Fitzgerald, head of production at Adnams, told the Telegraph: “When it comes to that next supply, that’s when we will start to see price increases.
“The price of barley currently is around 30% higher than it would have been this time last year.”
British makers of alcoholic drinks were already battling with a 7.9% rise in costs in January on an annual basis, according to official figures.
Fitzgerald said even if the situation in Ukraine was resolved, supply out of the country would “be difficult for some time”, meaning the price of barley is unlikely to drop.
For customers, a further price hike could come before the end of the year. He said: “Probably the third quarter and the fourth quarter, that’s when we’ll see more of this coming through, and if you’re dealing with a 25% to 30% increase in costs, then you have to pass some of that on to customers.”
