We have seen the price of fuel go up over the last couple of months in South Africa, together with the price of food. Interest rates have also been going up, it seems like the cost of everything is going up right now in South Africa and it looks like the price of beer will also be going up soon after the SAB (South African Breweries) implemented its annual price increase yesterday. But not to dishearten those beer lovers out there, the increase is not as great as the increases in everything else in South Africa.

SAB say they will increase prices by an average of 5.08%. This is much lower than the current inflation of 7.9% in South Africa. Last year, SAB only increased their prices by 2.84%. SAB have not yet announced how the price increased will be passed onto the consumer or when as the prices are set by the retailers.

It is funny to think that over the past couple of years in South Africa, the price of beer has been one thing that has not shot out of control unlike the price of fuel, house and car prices. This asks the question, ‘How are SAB doing it, if they can not increase prices that greatly but still be able to maintain such a successful business?”

When it comes to having a pint of beer, it seems like South Africa is still one of the best places around the world to have a beer in terms of price and quality. The Financial Times recently reported that the average price of a pint of beer in the UK could rise from £2.34 to £3.74, which is an increase of almost 60%. Putting that into rand terms, you looking at a pint costing the equivalent of almost R50. Now imagine walking into a pub in South Africa and paying R50 for a pint?

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