Fears beer could rise by 15p a pint

The price of British beer could increase due to soaring production costs, brewers have warned.

Cost of a pint of beer may rise by 15p Cost of a pint of beer may rise by 15p

Jobs in breweries may be threatened as a result of a hike in the price of raw materials, the Society of Independent Brewers (Siba) said.

UK harvests of barley and hops were badly affected by the summer downpours.

This has pushed up prices by nearly 40% for barley compared to last year and 100% for some hop varieties, Siba said.

It is feared the price of British-brewed beer could go up by as much as 10 to 15p per pint.

Peter Amor, chairman of Siba which represents 400 UK brewers, said: "After wages, raw materials represent the biggest single expenditure by small brewers who now face the dilemma of whether to put up their prices and lose trade or absorb the higher costs and take the risk of their businesses becoming economically unsound."

Research published in the Good Pub Guide 2008 last month showed a pint of bitter in UK pubs costs on average £2.41 - up 4% on last year.

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