Survival of the fittest

It looks as though the genie is well and truly out of the bottle as far as price increases are concerned. S&N today announced that they will soon be increasing the price to trade by, it claims, a "fair and reasonable" 5.75% or 4p per pint. Now, the time that filters through to the man (or woman) on the Clapham omnibus that means around 13p on the price of a pint of mainstream lager.

The beer market is in a really tender state at the moment. Consumer confidence is low, the smoking ban is biting, multiple grocers are selling beer below cost.... all factors that add up to a market which is creaking. On the supply side, raw material costs are increasing significantly, as are the costs of packaging and transportation.

It is going to be tough for everyone in 2008. Survival of the fittest in every respect.