Punters will have to shell out more money for their favourite pints after Diageo announced a price hike for its products.
The company said a 12% rise in wholesale price will be put in place from February 1. That means the price of Guinness, Smithwicks, Hop House 13, and other drinks produced by Diageo will see a jump in prices.
In November 2022, the company said it was going to withhold price hikes due to the cost-of-living crisis for the rest of the year but said it had now absorbed cost increases “for as long as possible”. Now, pubs will add 12 cent to the price of a pint across Ireland, excluding VAT.
Read more: Price hike for pints of Guinness, Coors, and other Diageo products to hit pubs
An industry source told the Irish Mirror: "Some pubs across the country will be charging over €5, others €5.50, and €6.20 and higher, depending on their margins. With a 12 cent increase, excluding VAT, minimum values of 25 cent have been mentioned as the real cost of this hike."
In other words, a pint of Guinness will cost an average of €5.20 across Ireland, although it will cost significantly more in Dublin. A single pint of Guinness cost €7.60 in some pubs in Temple Bar last March, and €7.95 in October, according to publicans.
Rivals Heineken increased prices on all its draught kegs in December. The firm announced its prices would rise by an estimated 17 cent to 25 cent on December 1 due to "unprecedented cost increases".
The average cost of a pint of Heineken was €5.55 but it will now jump closer to €6. The price hikes will affect the following brands:
- Heineken
- Moretti
- Orchard Thieves
- Lagunitas
- Beamish
- Murphys
- Tiger
- Coors
- Fosters
- Island’s edge
In a letter seen by the Irish Mirror, pubs were told: "Keg prices for Heineken and Coors lager will increase, equivalent to 17 cent per pint and at a pro-rata rate for all other draught brands and keg sizes."
The VFI branded yesterday’s announcement as “further bad news for the pub trade” that is already “grappling with soaring energy costs, inflation and the general increase in the cost of doing business”.
VFI chief Paul Clancy said: "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.
Read more: Irish pubs blast 25c pint price increase as 'madness' with punters to feel pinch
"It’s well documented that energy costs are at an 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."
Commenting on the increase, a Diageo spokesperson said: "Like many businesses in Ireland, we are facing significant inflation in input costs across our operations.“We have absorbed these costs for as long as possible. But, unfortunately, we can no longer continue to do so."
Read next:
How well do you know your Dublin pubs? Take our ultimate boozer quiz
Final two weeks of Gerry 'The Monk' Hutch murder trial set to kick off
Brave dog attack victim returns home from Dublin hospital as family says 'the nightmare is over'
Funeral of Fair City's Carol Anne Lowe hears husband remember 'beautiful' wife
Popular Dublin restaurant to close after pandemic 'deals massive blow'
Sign up to the Dublin Live Newsletter to get all the latest Dublin news straight to your inbox.
