Every year, in the run-up to and after the tax year-end, you see article after article telling you about your tax allowances and how to use them. And if you have already got a financial adviser, the chances are you are already aware of this and your adviser should be taking advantage of these allowances as part of their service.
Therefore, as the cold months begin to wane and the sun beckons you to the beer garden, we thought we would provide a brief analysis of a key aspect of financial planning that a large proportion of British people are interested in. Lager vs Ale.
Price Per Pint
- Lager: Typically, mass-produced lagers (e.g., Carling, Fosters) are cheaper, with prices ranging from £3.50 to £6 per pint in most UK pubs. Supermarket multipacks also make lager more economical in bulk.
- Ale: Standard ales (e.g., Greene King IPA) are similarly priced to lager but craft ales and real ales are often £1 to £2 more per pint due to smaller production scales and specialty brewing methods.
Alcohol by Volume (ABV)
- Lager: Usually 4% to 5% ABV, alcohol by volume, meaning you may need to drink more to feel the same effects as stronger beverages.
- Ale: Ranges from 3.5% to 7% ABV, with stronger ales offering better alcohol efficiency per volume. For example, a pint of 6% ale delivers 50% more alcohol than a 4% lager, meaning fewer drinks for the same effect.
Promotions and Discounts
- Lager: Widely available in supermarket deals (e.g., £10 for 12 cans) and pub happy hours. Major brands often run promotions, making lager cheaper over time.
- Ale: Less likely to be discounted, especially craft and local brews.
There are certainly other measures you could utilise to determine whether you get more “bang for your buck” between the two. And there is always the qualitative issue, which we have carefully avoided.
However, utilising our exhaustive analysis, we have calculated that lager is cheaper over time if you drink frequently; primarily predicated on the frequency of promotions and discounts on lager products.
So, there are two conclusions to draw from this article. Firstly, if you are partial to both lager and ale, then lager is the most cost-effective. The second conclusion is that if you read to the bottom of the first paragraph and start looking up tax allowances, you could benefit from having a financial adviser like us!
