AB InBev is putting its prices up in the UK by almost 8% - as previously predicted by The Grocer.

The Stella Artois and Budweiser brewer said the rising cost of both raw materials and energy had forced it to pass on an increase of 7.8%, effective from 2 January next year.

It said duty increases had also ratcheted up pressure on the business and pledged to continue to campaign for the abolition of the beer duty escalator.

“In the past we have worked to absorb cost increases through efficiencies,” said outgoing UK president Stuart MacFarlane, who is moving to take over the Central & Eastern Europe arm of the business next year.

“But with significant commodity price increases this approach is no longer sustainable. This is the smallest increase we are able to deliver and maintain our business on a sustainable footing.”

Earlier this year The Grocer revealed that cost pressure on the drinks industry meant the price of beer was set to rise by up to 10% in 2011.

Read more
Brewers tot it up: a drop to 2.8% abv means a swift halving in tax (1 October 2011)
Stella Cidre pulled in ‘exploding bottle’ alert (9 September 2011)
Alcohol prices soar 10% as cost pressure mounts (27 August 2011)