A MAJOR brewer is to the cut the strength of a popular beer from next week.
The change may anger fans fearing an alteration in taste, but there is some good news as it could mean lower prices at the bar.
From Tuesday Heineken will being producing its Sol lager with a lower ABV.
The strength of the drink will be reduced from 4.2% to 3.4%.
Sol is marketed as a light, refreshing beer and was first brewed in Mexico at the end of the 19th century.
It became part of Heineken’s beer portfolio in 2010 and is now brewed in Zoeterwoude in the Netherlands.
The new lower-strength beer goes into production from Tuesday, but it won’t appear at the bar or on supermarket shelves immediately.
The change will be accompanied by a drop in the wholesale price of Sol products.
One of the reasons the change is being made is to lower the amount of duty that needs to be paid on the beer.
In the face of rising costs in other areas it is hoped this will help prevent further price hikes.
It’s possible because in 2023 the government brought in a lower duty band for alcohol products with an ABV between 1.3% and 3.4%.
Reducing the strength of popular beers to take advantage of the band has become commonplace in the face of soaring duty costs in the past 18 months, even given the 1% cut in duty on draught products introduced in the last budget.
Because of this and other cost pressures Heineken and others have lowered the strength of some beers to reduce the tax paid.
Last year the strength of Dark Star Brewing Co’s Hophead, which is brewed by Asahi, was reduced from 3.8% to 3.4% ABV.
Big name beers including Stella Artois, Foster’s, Carlsberg, Spitfire, Old Speckled Hen and Bishops Finger have also all been reduced in strength in line with the introduction of the lower rate of tax on weaker booze.
Brewers are keen to avoid higher prices at the bar, particularly after it was revealed this month that the price of a pint has now hit £5.08 on average.
The most expensive region is still London, where a pint costs £6.16 on average, and the cheapest is Midlands at £4.47.
The price hikes are the result of a perfect storm of rule changes including changes to taxes on alcohol, packaging and employers.
In the face of rising costs Heineken has already hiked the prices of its draught products this year.
From February 1 it increased charges to pubs by an average of 2.97%.
It was up to individual pubs and chains to decide if they wanted to pass on the increased cost to customers, and if so by how much.
Heineken had also warned that changes to government legislation around packaging, which are set to come into force this year, will lead to “significant cost increases” for the company.
The changes will make manufacturers responsible for fees related to ensuring packing materials have been recycled or recovered.
Previously the business would have been responsible for 35% of the costs but this will now be increased to 100%.
But, the brewery giant said it had made “considerable efforts” across the business to “deliver cost savings and drive efficiencies” in 2024 to offset the impact of these pressures.
A Heineken spokesperson said: “As ever, we continue to make considerable effort across the business to deliver cost savings and drive efficiencies to keep price increases to a minimum, and reduce the impact of inflation on our customers.”
What else is happening to pubs?
While brewers have been feeling the pressure pubs have also been forced to push up their prices to cope with changes announced in the Autumn budget.
Wetherspoons is among those to have hiked the price of a host of popular drinks and menu items.
Its hikes saw the cost of a Guinness at The London and South Western branch in South-West London go from £4.66 to £4.81.
Meanwhile, the price of a Strongbow increased from £3.24 to £3.39.
Spoons has said several drinks including Carling, Budweiser and Coors would not go up in price.
Wetherspoon boss Tim Martin said: “Wetherspoon has always tried to remain as competitive as possible. We hope that our prices will still be reasonable in spite of these increases.’’
The decision came ahead of an increase in employer’s National Insurance Contributions set to come into force in April.
The rate at which employers make National Insurance Contributions will increase from 13.8% to 15%.
Meanwhile, the threshold at which businesses pay them is being lowered from £9,100 to £5,000.
Customers at Young’s pubs face paying 20p more for a pint after the Autumn Budget.
Simon Dodd, chief executive of Young’s, said the chain will hike its prices by between 2.5% and 3% because of these increased costs.
He said: “We’ll mitigate as much as we can of the NI contribution – we’ll do that through efficiency, we’ll do that through investing in our pubs.
“But there will be some price passed on to the consumer.”
Meanwhile, All Bar One owner Mitchells & Butlers told The Sun last year that the price of its pints could rise by between 10p and 15p.
The group, which also owns Toby Carvery, said higher wage expenses were “by far the most significant increase” in its cost base following the Autumn Budget.
Its chief executive Phil Urban said the chain was facing around £23million a year in extra costs just from the rise in National Insurance, with the increase in the minimum wage also sending its wage bill surging.
In November, chief executive of pub chain Fuller’s, Simon Emeny, said the price of beers at its hotels and pubs would likely be hiked by 10p.
How to save money buying alcohol
Alcohol can be pricey if you’re planning a party or hosting an event but there are ways to cut costs.
It’s always important to drink responsibly, here, Sun Savers Editor Lana Clements share some tips on getting booze for the best price.
Stocking up can mean big savings on drinks, especially if you want to buy wine or fizz.
The big supermarkets regularly offer discounts of 25% when you buy six or more bottles of wine. The promotions typically run in the lead up to occasions such as Bank Holidays, Christmas and Easter.
If you know you are going to need booze later in the year, it can be worth acting when you see offers.
Before buying your preferred drink make sure you shop around to find the best price – you can use a comparison site such as pricerunner.com or trolley.co.uk.
Don’t forget that loyalty cards can unlock better savings so make sure you factor that in too.
If you like your plonk, wine clubs can also be a good way to save money and try new varieties. You’ll usually have to pay a membership fee in return for cheaper price so work out if you will be buying enough to make the one off cost worthwhile.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
