Drowning your sorrows just got more expensive

Those turning to drink because of the economic crisis have just suffered another hit - the cost of a beer is going up, with the hotel industry pointing the finger at drinks companies.

DB Breweries put the price of all packaged beer up by 5 per cent on March 1 and increased the cost of tap beer by 2 per cent.

The Hospitality Association of New Zealand said the move was unusual because drinks companies usually increased prices once a year at the same time excise duty was adjusted.

Lion Nathan said it was also putting the price of packaged beer up 5 per cent and the price of tap beer up 2 per cent, from March 30.

The price increases would hit consumers and cost jobs, said association chief executive Bruce Robertson. Producers should have waited until June and exercised the same restraint the rest of the economy was applying in these challenging times.

For some it was a double blow with the increase in the minimum wage also driving up costs.

The industry would be upset if the producers planned to double dip with further increases later in the year.

DB spokeswoman Hailey Bloore said the price rise was a result of higher prices for malt, barley, sugar, glass and aluminium.

"The difference in the price increase reflects that tap beer requires less packaging, so they have incurred a lower percentage of the cost increase," she said.

- NZPA