'This isn’t just about the price of a pint': Publicans hit out at Guinness price increase

Eva Osborne

Publicans have strongly criticised Diageo for increasing the price of its draught products, namely Guinness and Guinness 0.0, by €0.07c per pint and €0.10c per pint, respectively.

However, when VAT is added to that, and the publicans’ margins are factored in, the price for consumers is likely to climb by €0.20, according to The Irish Times.

The price increase will take effect from February 2nd, with Diageo attributing the increase to higher costs, including wage inflation and rising energy costs.

The Vintners’ Federation of Ireland (VFI) said the price increase will pile more pressure on pubs already struggling to survive.

VFI chief executive, Pat Crotty, said: “Publicans are being hit from all sides, but drink costs are the biggest burden they face.

"This latest price increase from Diageo will put even more pressure on pubs that are already operating on extremely tight margins.

Many will be left with no option but to pass this on to customers, which helps nobody.

Crotty said VFI members understand that suppliers also face rising costs, but said "there comes a point where pubs simply cannot keep carrying these increases alone".

"Pubs are at the heart of local communities and suppliers depend on them for their route to market. We expect suppliers, including Diageo, to recognise that reality and to support VFI members rather than repeatedly adding to their cost base.”

The VFI warned that repeated supplier price increases are contributing to rural pub closures, where pubs are already under severe pressure from declining footfall and rising operating costs.

This isn’t just about the price of a pint.

“It’s about the long-term viability of pubs across the country. Community pubs are being pushed to the brink, and continued increases in drink prices only accelerate that trend.”

The VFI is calling for an excise rebate scheme for draught beer and cider sold in pubs, and measures to ease rising labour costs, including employer PRSI supports.

“Publicans cannot continue to absorb these hits year after year. If suppliers value the role pubs play in Irish life, now is the time to show it through meaningful support. Without action, more pubs will close and once they’re gone, they’re gone for good," Crotty said.