How are UK spirits and brewing founders responding to rising material and energy costs, and what pricing strategies are they using?

Rising input costs across the supply chain are forcing producers to pass increases to consumers to maintain margins. Cost pressures are significant and widespread.

**Cost increases members reported:** - Glass up 11% (though some suppliers reported energy-related hikes up to 25% on their own costs) - Cardboard rising sharply - Botanicals and juniper up substantially (juniper prices now approaching double what they were 5 years ago) - Energy bills up nearly 30% - Sealing wax and other ancillary materials all rising - Shipping costs up across the board

**Pricing response:** - **Major brewers** raising prices by 5% in Q1, with expectations of another 5% rise mid-2022 - Members acknowledge they must pass some costs onto consumers or margins will be unsustainable

**Key caveat:** The member consensus is that cost inflation is broad-based and severe ("everything from sealing wax to botanicals and blinking cardboard is well up"), making it difficult to absorb costs without retail price increases. Members are watchful about further energy price increases, which remain uncertain.