15-05-2025
Price of popular beer hiked in supermarkets including Sainsbury's and Morrisons
Other brands are cutting alcohol content to avoid hiking prices
BEER WE GO Price of popular beer hiked in supermarkets including Sainsbury's and Morrisons
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DRINKERS are feeling the pinch as prices of the popular Spanish lager have shot up in supermarkets across the country.
The price of your favourite San Miguel has been steadily increasing since Budweiser Brewing Group (BBG) took over its production in January.
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BBG blames "government-imposed duties and new packaging taxes," which they say have increased production and distribution costs
Credit: Gary Stone
Single bottles have been hit hardest, rising by an average of 34p to a hefty £2.55, according to an investigation by The Grocer.
Sainsbury's shoppers have seen the biggest jump, with prices going up twice since January, from £1.99 to a whopping £2.75.
Morrisons isn't far behind, with a bottle now costing £2.50, up from £2.20.
Multipacks are also affected, with a four-pack of cans now costing around £5.94. Even larger packs have seen a slight increase.
So, what's behind the price hike?
BBG blames "government-imposed duties and new packaging taxes," which they say have increased production and distribution costs.
The brewing and pub industry is dealing with a slew of financial pressure, including a rise in employee national insurance contributions and fresh charges on waste packaging, which have added £1 to the cost of a 12-pack of beers.
This follows a 3.6% increase in duty rates introduced in February.
This hated levy is charged on all drinks with an alcohol by volume (ABV) strength exceeding 1.2%, either at the point of production or upon importation.
Sainsbury's and Morrisons say a variety of factors are impacting prices.
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Asda declined to comment.
However, it seems San Miguel has been struggling to keep its head above water. Sales have dipped since BBG took over, falling by a hefty 13.3% to £216.3million.
Despite the price increases, BBG is trying to keep the Spanish spirit alive with a big marketing campaign, promising a "Spanish Summer – No Matter, Where," complete with TV ads, social media buzz, and pub giveaways.
A BBG spokesperson said: "San Miguel remains a consumer favourite, and we look forward to activating it this year with exciting marketing and trade campaigns."
Other popular beer brands have opted to reduce alcohol content as a way to minimise the impact of rising costs and avoid price increases.
What brands have slashed alcohol content?
Coors is dropping the alcohol level of its lager from 4% to 3.4% in the coming weeks, joining a growing list of brands watering down their booze.
Earlier this year, Heineken dropped the alcohol level of its SOL brand drinks from 4.2% to 3.4%.
Grolsch was cut from 4% to 3.4% last year, leaving fans furious.
The beer, relaunched by Asahi in 2020 after being scrapped the year before, was previously sold at 5% ABV.
Kronenbourg saw its alcohol content drop from 5% to 4.6%, with Carlsberg Marston's insisting it could still 'deliver great taste and quality' despite the change.
Hophead, brewed by Asahi-owned Dark Star, also fell from 3.8% to 3.4% last year as part of a major revamp across the range.
Banks Amber Ale was reduced from 3.8% to 3.4% in mid-2023 as part of a move to encourage 'moderation' among drinkers.
John Smith's Extra Smooth, the UK's No.1 keg ale, had its ABV trimmed from 3.6% to 3.4% to support healthier drinking habits according to Heineken.
Fosters, the Aussie-themed lager, had its alcohol level cut from 4% to 3.7% back in 2022 as part of Heineken's drive to meet demand for lower-alcohol drinks.
What's happening at pubs?
Last week, the boss of Wetherspoons warned the price of a pint will go up by 20p in the coming days as breweries are already pushing through hikes on the back of costs pressures from Labour's tax hikes.
The pub industry had already faced demands for higher prices from breweries, which had increased their prices by around 7p per pint in the past week, Sir Tim Martin revealed.
"It means pints in pubs are going to go up by on average 15p to 20p this month", he said.
Despite this, Sir Tim said he won't be raising prices at his own pubs.
The British Beer and Pub Association recently warned that the price of a pint is expected to exceed the £5 mark, up from the current average of £4.80.
Simon Dodd, chief executive of Young's, announced plans to raise the chain's prices by 2.5% to 3%.
Similarly, Stonegate Group, which owns popular pubs like Slug & Lettuce, Walkabout, and Popworld, increased prices by 4% for its leased and tenanted pubs on May 2.
Meanwhile Heineken increased the price of its draught beer by an average of 2.97% for pubs in February.
In January, Wetherspoons raised the prices of some drinks and meal deals by up to 30p.
