Tennent’s raises prices for first time in two years

John Gilligan

Tennent Caledonian has revealed that the wholesale selling price of the brewer’s draught beers, including Tennent’s Lager and Caledonia Best, will increase on 1st March 2014, by 2.2% on a duty inclusive basis. This is the company’s first price rise (excluding duty) to the Scottish free on-trade for Tennent’s owned draught beers since 2012 and is the lowest increase of any of the major brewer’s announced to date.
However for the second year running, a price freeze will be implemented across the company’s draught cider portfolio – which includes Magners Golden Draught, Blackthorn, Gaymers and Addlestones.
Prices across the company’s full draught portfolio were frozen in 2013 for the free on-trade. This year’s 2.2% increase for draught owned beer brands reflects the continuing impact of rising production and operating costs at the brewery.
John Gilligan, Managing Director of Tennent Caledonian, commented, “We’re very conscious that price rises are not good news. As a result, we have looked to minimise the level of increase, despite rising costs of our raw materials and utilities. This announcement which combines a price freeze for our draught ciders and a relatively modest rise for our draught beers, once again shows our strong understanding of the free on-trade in Scotland and what our customers need for 2014. As the brewer of some of Scotland’s most successful and best loved brands, we know that anything we can do to help licensees in the current economic climate is warmly welcomed. We will continue to work in close partnership with our customers and through measures such as fair pricing, a world class portfolio of brands, exceptional customer service, financial support and training, will be right behind them as they develop their businesses in the year ahead.”