Tuesday, January 10, 2023

Fiachra Gallagher

The price of a pint of Guinness will increase by 12 cent — excluding VAT — from the start of next month.

Alcohol giant Diageo has confirmed the increase will be across the board for its draught beer brands.

In a statement, the company said it has faced significant inflation and have absorbed the costs for as long as possible.

The price change will take effect from February 1st.

In a statement, the Vintners’ Federation of Ireland said the increase was “further bad news” for the pub trade, given the challenges already posed by energy costs and inflation.

VFI chief Paul Clancy noted that the increase comes soon after Heineken’s decision to raise the price of its alcohol products.

“Publicans are getting hammered from every angle at the moment and this news from Diageo is a further blow to the trade.

Diageo’s price hike will likely be passed on to the consumer, the federation said, something publicans “are very unhappy about”.

“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,” Mr Clancy said.

“It’s well documented that energy costs are at all all-time high, while at the same time the trade faces losing the 9 per cent 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.”

More to follow…

 

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