British drinkers face a fresh hit to their wallets as Asahi has confirmed it will pass rising alcohol duty costs on to customers from next year.
The Japanese brewing giant, which also owns Peroni, Fuller's Brewery and Cornish Orchards, said the 3.66 per cent rise in alcohol duty announced by Chancellor Rachel Reeves will be transferred directly to consumers.
Dhati Holohan, Asahi UK sales director, told the Morning Advertiser that while she cannot specify exact timing, the February duty increases will “absolutely be passed on”.
Ms Holohan said: “The cost profile of your business is increasing”.
She added: “We see where inflation is and how much duty has increased; there will be costs that need to be passed on”.
The duty uplift, set to take effect from February 1 2026, could see a pint of Asahi rise from £6.11 to £6.33, adding 22p to the cost of each drink.
The brewing industry is facing mounting pressure from a series of rising expenses beyond duty alone.
Employers have been hit by an increase in National Insurance contributions from 13.8 per cent to 15 per cent.
The threshold at which payments begin has also fallen sharply from £9,100 annually to £5,000.
Staff costs continue to climb after the national minimum wage rose by 6.7 per cent to £12.21 per hour in April.
Asahi will hike prices next year, passing rising alcohol duties onto British drinkers
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A further rise of 4.1 per cent to £12.71 is scheduled for April 2026.
Publicans have also seen business rates relief cut from 75 per cent to 40 per cent following decisions outlined in the Budget.
A new levy on packaging known as Extended Producer Responsibility is adding further costs for brewers already contending with inflationary pressures.
Asahi has indicated it will attempt to offset rising expenses through operational efficiencies while maintaining investment in pubs and customer experiences.
The outlook for many pubs appears increasingly challenging as new survey data from the UK Spirits Alliance shows that three in 10 pubs fear they cannot survive another 12 months if costs continue to rise.
This is the equivalent of around 11,000 establishments across the country.
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The British Beer and Pub Association has already warned more than 2,000 pubs could close permanently in 2026 | PAAround 98 per cent of landlords and hospitality operators believe the Government is failing to support the sector.
This marks a significant change from a year ago when 63 per cent of respondents said they did not associate Labour with supporting pubs.
Paul Mitchell, who runs the Dinton Hermit near Aylesbury in Buckinghamshire, described the current situation as extremely difficult for operators.
Mr Mitchell said: “Pubs are closing at an alarming rate up and down the country”.
He said: “Since the last Budget, thousands of jobs have been lost across the hospitality sector and it simply isn't sustainable”.
Mr Mitchell added: “It's little wonder that Labour has lost trust among publicans.
He said: “If the Chancellor wants to support the sector, a complete freeze on excise duty for spirits would be a good start”.
The trade body UKHospitality has warned that up to 111,000 positions across restaurants, pubs and bars could be lost.
Kate Nicholls, chair of the organisation, set out the scale of the challenge facing businesses.
Ms Nicholls said: “The impact of the last Budget was devastating”.
She said: “Business closures, job losses, curtailed investment, consumer price rises and lost opportunities for young people are all direct impacts of the choice made to inflict £3.4billion of additional annual cost on our sector”.
Ms Nicholls added: “Without action, we will see these impacts continue and intensify”.
Brewers are also responding to cost pressures by reducing the alcohol strength of well-known lagers.
Heineken UK confirmed last month that Foster's will fall from 3.7 per cent to 3.4 per cent ABV from February 2026, following an earlier reduction from 4 per cent in January 2023.
Coors cut its alcohol content from four per cent to 3.4 per cent.
Heineken's Sol brand also fell from 4.2 per cent to 3.4 per cent earlier this year.
The Treasury have been contacted for comment.