Historically the price of beer (according to type and quality) was determined by an Assize of Ale a legal process whereby beer was tasted and an appropriate price determined allowing the brewer and the publican to make a fair or normal profit.
In the 2020s the market rules in terms of price unregulated (although VAT and duty are forms of regulation).
Carling (aka Molson Coors) have announced that the strength of its ordinary lager will be reduced from 4% to 3.4% from October. This appears to apply to supermarkets and off sales. Carling Black label which is perhaps more likely to be found in pubs remains at 4.7%. The move will save Molsons money as lower duty is paid at 3.4%. The price will of course not be cut.
Meanwhile Wetherspoons have hiked some beer prices. Spoons pricing policy is arguably a bit of a mystery (tho not one hopes to Spoons HQ) but of course related to overheads in particular pubs and the market in specific areas. Prices on real ales have increased by 10p-ish this week. In the Spoons I occasionally visit that means £2.40 a pint.
Of course this is low compared to other pubs but Spoons has 800 and when it comes to many of the cask beers the only significant outlet, thanks to Big Beer’s strangehold on bartops.
I’m taking a couple of days off so I was able to enjoy a well kept pint of Thornbridge Jaipur at lunchtime (one only btw) which was £2.69- the beer invariably selling at a slightly higher price but still far cheaper than will be found elsewhere.
Spoons has issued a number of profit warnings recently but it is not losing money. These are about trading come in a bit below analysts expectations. These are the people who determine market sentiment and hence the Spoons share price.
The Assize of Ale was more democratic.
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