Peterborough beer maker Oakham Ales calls on new PM to flatten impact of energy crisis

Brewery hopes new Tory leader has cure for hangover from rising prices
Watch more of our videos on Shots! 
and live on Freeview channel 276
Visit Shots! now

A brewery in Peterborough is hoping for Government action to help ease the struggle employers are facing during the energy crisis.

The plea comes from Oakham Ales, in Maxwell Road, Woodston, which says it is tackling huge challenges as record levels of inflation and soaring energy cost drive up the cost of raw materials, production and distribution.

Hide Ad
Hide Ad

Now the brewery is looking to the next Prime Minister – either Foreign Secretary Liz Truss or former Chancellor Rishi Sunak – to ensure a plan of action to ease the headache caused by rising energy costs is top of their in-tray from next week.

The premises of brewery Oakham Ales in Maxwell Road, Woodston, Peterborough.The premises of brewery Oakham Ales in Maxwell Road, Woodston, Peterborough.
The premises of brewery Oakham Ales in Maxwell Road, Woodston, Peterborough.

The call comes as fears grow that much of the hospitality industry, particularly pubs and restaurants, will be forced to close by a combination of rising prices and a fall in customer spending.

It follows a demand from the Cambridgeshire Chamber of Commerce and the British Chambers of Commerce for the Government to adapt a five point action plan to soften the impact of the crisis on businesses.

A spokesman for the brewery, which employs about 30 staff, said: “Dealing with the impact of the energy crisis must be a priority for the new Prime Minister – this is an opportunity for some creative thinking.

Hide Ad
Hide Ad

He added: “As always, a reduction in duty would be welcome."

Adrian Posnett, managing firector of Oakham Ales at Woodston, Peterborough.Adrian Posnett, managing firector of Oakham Ales at Woodston, Peterborough.
Adrian Posnett, managing firector of Oakham Ales at Woodston, Peterborough.

The duty scale varies depending on the brewery size. Oakham Ales produces about 50,000 hectare litres of beer a year - equivalent to about 8.8 million pints and pays about £8.20 per hectare litre.

He said the business, which was already leaner after the Covid-19 pandemic, was now battling a triple whammy of price increases for raw ingredients, production and distribution.

He said the last few months had seen a huge increase in the cost of production of the brewery’s best selling Citra ale.

Hide Ad
Hide Ad

The cost of producing a pint of beer rose last year by about nine per cent but that soon increased to about 12 per cent as energy prices started to climb and inflation hit a 40 years record high of 10.1 per cent in July.

The spokesman added: “The prospects of what might still to be happen are frightening.”