Heineken UK is raising beer and cider prices for the on-trade by 4% to reflect cost pressures on its business.
 
Heineken UK said today (5 January) that it will raise on-trade beer wholesale prices by GBP0.04 per pint from 1 February.
 
Cider prices will rise by GBP0.05 per pint from 11 January.
 
A spokesperson for Heineken UK, previously named Scottish & Newcastle UK, told just-drinks that the brewer does not plan to increase prices again in 2010, but cannot rule out further rises if market conditions change.
 
"Unlike other major brewers, S&N did not implement an extra increase in the second half of 2008 and chose to absorb a large proportion of increased costs over that period," said the group.
 
Beer sales have fallen by around 5% in volume in the UK over the last 12 months, according to industry figures.  
 
Heineken's decision to raise prices comes after the UK Government opted in its pre-Budget Report to maintain beer duty tax at current levels while also increasing value added tax from 15% to 17.5%.  
 
The British Beer and Pub Association (BBPA) has complained that the Government is implementing a "stealth tax" on the sector. Following the pre-Budget Report, an average pint of beer will rise by at least GBP0.06 in price, the BBPA said.