Shepherd Neame to Raise Beer Prices Amid Tax Increases

Shepherd Neame, Britain's oldest brewer, announced it will raise beer prices due to increased taxes and wage costs affecting its operations from April. The company expects these changes, resulting from the Labour government's policies, to add approximately £2.6 million to its annual expenses. Chief Executive Jonathan Neame characterized the current market as challenging but expressed confidence in the company's adaptability to these pressures. The increase in employer National Insurance contributions and minimum wage, aimed at funding public services, has drawn criticism from hospitality groups, particularly affecting businesses employing lower-wage workers. Despite a 12.6% decline in beer volumes in the second half of 2024, the brewery's underlying profit increased by nearly 10% to £4.2 million, indicating some resilience in financial performance. Other breweries in the sector are also expected to raise prices as they grapple with similar cost pressures.