Wholesale suppliers of draught alcohol increased some of their prices on 1st February 2025. They claim that this is due to:

1. Changes in Alcohol Duty: Despite the recent reduction in alcohol duty on draught products, suppliers claim that increases in duty rates for non-draught products, has impacted on their cost structures and therefore led to higher costs. So, whilst the Chancellor intended there to be no increase on cost of draught products at the bar suppliers have nevertheless increased their prices.
2. Inflation: Despite inflation falling from over 10% in 2022 to 3.5% in December 2024 suppliers claim inflation has increased the costs of raw materials, transportation, and labour. Suppliers simply pass these costs on to customers in the form of higher prices.
3. Supply Chain Disruptions: Suppliers continue to claim that ongoing supply chain issues, including shortages of key ingredients and packaging materials, have driven up costs.
4. Energy Costs: Suppliers claim that recent increases in energy prices (combined with expected increases this coming April – expected to be between 5% and 7%) have increased the cost of production and distribution.
5. Regulatory Compliance: Suppliers claim that compliance with new regulations and standards have added to their operational costs. This includes the reform of alcohol duty rates and reliefs announced in the Spring Budget in 2023 by the then Conservative Chancellor and the new Alcohol Products (Excise Duty) (Amendment Regulations) 2024 announced by the current Labour Chancellor which came into effect on 1st February.

As a small business we are subject to the same pressures as our suppliers.