Wed, 19 Mar 2025

Wed, 19 Mar 2025 Brewer to increase prices following tax rise

Shepherd Neame, based in Faversham, employs 1,600 people and runs 290 pubs.
Shepherd Neame, Britain's oldest brewer, has announced plans to increase beer prices due to rising taxes and wage costs that came into effect in April. The company, based in Faversham, Kent, said it expects to lose around £2.6m annually as a result of the government's policies, which include increased employer national insurance contributions (NICs) and higher minimum wage rates. To mitigate these costs, Shepherd Neame plans to implement price increases and cost efficiencies over the next 18 months. According to Jonathan Neame, chief executive of the company, the current market is "challenging" and the additional costs imposed on their sector are "unwelcome". However, he expressed confidence in the company's ability to adapt to the new circumstances. The increased costs come as Shepherd Neame reported a 12.6% decline in beer volumes during the second half of 2024 compared to the same period last year. Despite this, underlying profit rose nearly 10% to £4.2m due to a fall in inflation.
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