Shepherd Neame faces price hikes due to tax increases
- Shepherd Neame announced plans to raise prices due to increased tax costs.
- The additional costs from the tax changes are estimated to be £2.6 million annually.
- The brewery aims to manage these costs while passing some burden onto customers.
In the United Kingdom, Shepherd Neame, recognized as the oldest brewery in the country, announced its intention to raise prices in response to tax increases imposed by the government. The tax adjustments, which include a rise in employers' national insurance contributions and an increase in the national living wage, are scheduled to take effect in April 2025 following their announcement in October 2023. These financial changes are expected to cost the brewery an additional £2.6 million annually, which has been deemed unwelcome by the company's executives. The brewery has stated its plan to absorb some of these additional expenses through operational efficiencies over the next 18 months. However, to counterbalance the rising costs, they will ultimately pass on some of the financial burden to customers through an increase in prices. Jonathan Neame, the chief executive of Shepherd Neame and a direct descendant of its founding family, expressed dissatisfaction over the government's decisions, labeling the additional costs as