Britain’s oldest brewer warns price of a pint will have to rise

Worth hikes and ‘price efficiencies’ are on the playing cards at Britain’s oldest brewer Shepherd Neame because it readies itself for the tax impression of the Autumn Price range. 

The pub group behind the Spitfire and Bishop’s Finger brangs mentioned increased employer nationwide insurance coverage contributions and a rise within the nationwide residing wage will price it £2.6million this 12 months. 

Shephard Neame had additionally beforehand indicated it might incur £1.2million of further prices in 2025 as a outcomes of logistics adjustments, however the group now expects prices to be ‘£0.3million increased than this determine’. 

The enterprise mentioned it might ship income progress and first half income in step with expectations and introduced it was launching a share buyback programme.

The group is shopping for up and cancelling its bizarre shares as much as a most of £0.5million to be able to enhance the earnings and worth of its shares. 

Shepherd Neame warned of future worth improve as additional Price range prices hit, driving up the value of a pint.

It mentioned: ‘In widespread with different operators throughout the sector, we’re not resistant to the numerous price headwinds within the second half following the Authorities’s latest Price range, notably the rise in nationwide residing wage and nationwide insurance coverage from April. 

‘We estimate the complete 12 months impression of those two objects is £2.6m, with the preliminary impression falling within the last quarter of our monetary 12 months.

‘We had beforehand indicated that we might incur £1.2m of further prices in 2025 on account of the change in logistics preparations with GXO. We now estimate these prices will probably be £0.3m increased than this determine in 2025.

‘We have now plans to mitigate the vast majority of the fee will increase over the following 18 months, by proactive administration motion together with worth will increase and value efficiencies.’

Shepherd Neame mentioned it ‘traded strongly’ over the Christmas interval, with like-for-like retail gross sales up 7.4 per cent for the 5 weeks to six January. 

The brewery mentioned it loved ‘many record-breaking days in particular person pubs, with notably robust buying and selling within the last few days as much as Christmas day itself’.

It flagged notably robust retail gross sales throughout the M25, the place like-for-like gross sales rose by 13.3 per cent. 

Complete 12 months up to now like-for-like gross sales for the 26 weeks to twenty-eight December elevated by 4.4 per cent.  

On beer gross sales, Shepherd Neame mentioned: ‘Complete beer gross sales stay in decline pushed by the continuing fall in bottled beer gross sales, offset partly by robust native direct provide. Complete beer quantity for the primary half was -12.6 per cent, personal beer quantity was -13.9 per cent.’ 

In October, Shepherd Neame flagged issues concerning the impression of proposed labour market reforms.

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