Pub prices too low?

Brewing giant InBev has told British pub operators they should be charging more for beer because consumers are willing to pay more.

Steve Kitching, managing director of on-trade sales, said some pub managers treat beer “like petrol” and have a “price point ceiling in mind, which they are wary of breaching.”

“Traditionally, retail pricing was determined purely on margin terms based on retailers’ need to make a certain percentage profit,” Kitching. “Today it’s more about what consumers are willing to pay, but there is still some way to go.”

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