DRINKERS will feel the pinch as the price of a popular pint is set to shoot up across the country in months.
The cost of a pint of Asahi will increase next year due to rising costs, alcohol duty and changes to Government legislation.
Dhati Holohan, Asahi UK sales director, told the Morning Advertiser she can’t give an exact timeframe for the price hikes but increases in alcohol duty in February will “absolutely be passed on”.
She added: “The cost profile of your business is increasing.
“We see where inflation is and how much duty has increased; there will be costs that need to be passed on.”
Alcohol duty is a tax that is applied by the government to alcoholic drinks.
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It is usually uprated each year using the Retail Price Index (RPI) for inflation from the previous September.
In her Budget last week Chancellor Rachel Reeves confirmed that the government will uprate all alcohol duty rates by 3.66% from February 1, 2026.
As a result, the price of a pint of Asahi could rise from £6.11 to £6.33 – an increase of 22p.
The news comes as brewers have also been hammered by a cocktail of crippling costs, including a costly new glass tax known as Extended Producer Responsibility.
Meanwhile, an increase in employer National Insurance contributions rates from 13.8% to 15% and lowering the threshold from which it is applied from £9,100 a year to £5,000.
National minimum wage also rose by 6.7% to £12.21 an hour in April and is set to rise by 4.1% to £12.71 from April 1, 2026.
In a final blow, pubs have also been hit with higher business rates after the Chancellor reduced the relief from 75% to 40% in April.
Asahi, which also owns brands Peroni, Fuller’s Brewery and Cornish Orchards, said it will mitigate rising costs as much as possible through efficiencies.
The company said it will also invest in pubs, customers and providing quality experiences.
Asahi was approached for comment.
Other drinks news
Heineken UK last month confirmed that it will begin brewing its Foster’s Larger with a reduced ABV from next year.
The popular beer is currently brewed at 3.7% but will be reduced to 3.4% from February 2026.
What is alcohol duty?
ALCOHOL duty is a tax applied by the government to alcoholic drinks.
This tax is paid by the manufacturers or importers when the alcohol is produced or first brought into the country.
However, businesses almost always pass this cost on to shoppers, meaning the duty is built into the final price you pay in a shop or pub.
The system is designed so that the amount of tax you pay depends directly on the strength of the drink.
This means that products with a higher alcohol by volume, or ABV, such as spirits and stronger wines, face a heavier tax burden than lower-strength products like beer and cider.
The government uses this tax for two main reasons.
It raises revenue to fund public services and acts as a public health measure by discouraging excessive drinking through higher prices.
The global brewer said the move is being made in response to a shift in drinking habits.
Heineken said the new ABV would allow customers to benefit from more competitive pricing.
It said inflationary pressures and changes to alcohol duty introduced earlier this year are the main cost issues.
The company previously lowered the ABV of the popular lager from 4% to 3.7% in January 2023.
Meanwhile, the cost of San Miguel shot up in supermarkets across the country in May.
The cost of a single bottle rose by an average of 34p to a hefty £2.55.
The price of a four-pack of cans rose to £5.94.
Coors also dropped the alcohol level of its lager from 4% to 3.4% at the same time.
Plus earlier this year Heineken slashed the alcohol level of its Sol brand drinks from 4.2% to 3.4%.
Hospitality in crisis
THREE in ten pubs say they may not survive another year if costs increase – the equivalent of 11,000 pubs across the UK, a survey shows.
Most (98%) landlords and hospitality businesses say the government is failing to back pubs or support the sector.
The sector has been hit by increases to employer national insurance contributions with warnings about the minimum wage bumping up salaries.
It marks a huge difference from 12 months ago when 63% of those surveyed didn’t associate Labour with backing boozers.
The figures come from UK Spirits Alliance who are asking for a freeze on excise duty following a 10% hike under the Tories.
Landlord Paul Mitchell, who runs the Dinton Hermit near Aylesbury, Buckinghamshire, said: “Pubs are closing at an alarming rate up and down the country.
“Since the last Budget, thousands of jobs have been lost across the hospitality sector and it simply isn’t sustainable.
“It’s little wonder that Labour has lost trust amongst publicans.
“If the Chancellor wants to support the sector, a complete freeze on excise duty for spirits would be a good start.
“Pubs are more than pints; spirits generate a higher profit margin and offer choice to our customers.”
Meanwhile, UKHospitality has warned that as many as 111,000 jobs could be lost across restaurants, pubs and bars by 26 November.
Kate Nicholls, chair of the group, said: “The impact of the last Budget was devastating.
“Business closures, job losses, curtailed investment, consumer price rises and lost opportunities for young people are all direct impacts of the choice made to inflict £3.4billion of additional annual cost on our sector.
“Without action, we will see these impacts continue and intensify.”