10 January 2023
By Elaine Murphy
The announcement by Diageo of an increase in the price of its beers, including Guinness, is further bad news for the pub trade already grappling with soaring energy costs, inflation and the general increase in the cost of doing business, says the Vintners’ Federation of Ireland (VFI).
Publicans will now have to pay an extra 12c for a pint of Guinness and, given the rapidly increasing costs of running a pub, will most likely have to pass on the price increase to their customers. VFI members are extremely frustrated about the situation and are calling on Diageo to reconsider the move. The price increase is due to come into effect on 1st February.
VFI Chief Executive Paul Clancy says: “Following the increase in Heineken prices in December, this is the second major price increase our members are having to deal with in a few short weeks. Publicans are getting hammered from every angle at the moment and this news from Diageo is a further blow to the trade.
“We’re heading into the quietest few months of the year for the trade so the increase in the price of a pint couldn’t come at a worse time. Due to the unprecedented cost of doing business publicans will have to pass on this price increase to their customers, which is something they are very unhappy about.
“It’s well documented that energy costs are at all all-time high, while at the same time the trade faces losing the 9% hospitality VAT rate at the end of February. The trade can’t keep taking these hits on what appears to be an almost weekly basis. The VFI is calling on Diageo to reconsider its decision in light of the pressures on the pub trade,” concludes the VFI Chief Executive.