19 January, 2005

United Kingdom: Brewer Coors, which makes best-seller Carling as well as Grolsch, Worthington and Caffreys, is to raise prices by 2.5% from February 6. The increase on all brands, well above current inflation of 1.5%, will see 5 pence added to the average £2.20 for a pint of Carling. It comes despite "superb" sales over Christmas.

Sales director Kevin Brownsey said the rise was because of significant increases in raw materials, energy, distribution and packaging costs. Mr Brownsey said: "The increase will cover some of that, but is not intended to boost the value of the company - it's about protecting margins."

Coors, which sold five million barrels of beer in the UK last year, expects supermarkets to pass on the increase to customers. Last November, rival beer giant Interbrew hinted the price Stella Artois lager would rise by above the level of inflation early this year. Scottish Courage refused to comment, but said "pricing levels are under constant review".

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