UK: Scottish & Newcastle to raise beer prices next year

Brewing group Scottish & Newcastle PLC plans to raise beer prices next year, according to Daily Telegraph, December 18.

The company, which brews Kronenbourg 1664, Newcastle Brown Ale and Strongbow, has written to wholesalers telling them it intends to hike beer prices by 3.5 pct as of next month, the Daily Telegraph reported.

The brewer has hinted that it will push for a similar price increase in supermarkets when it starts its annual negotiations with retailers in March 2007, the newspaper said.

The move is likely to be the start of a major attempt by brewers to shake off relentless price inflation that has hit the alcohol market in the UK, it said.