Brewers drop prices to attract drinkers

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Lager lovers will be cheered by remarks which the president of the German Brewers Association, Wolfgang Burgard, made as to the desirability of lowering costs for both the export and domestic markets. Burgard said: "What concerns us is the fall in sales in hotels and restaurants. In this year we expect sales to drop by 3%.

"While most breweries raised their prices last year, they have since lowered them in reaction to the recession. This is the way forward."

In the UK, soaring beer prices and rising rents have been blamed for a huge number of pubs changing hands in recent years.

The GMB union said the level of business failures and increasing debts in the industry was high because of "unrealistic" rents as well as the price of beer.

Drinkers are hoping Chancellor Alistair Darling, who delivers his Budget on Wednesday, will heed Burgard's comments.