Publicans cannot afford not to pass on Wednesday's price hike from Diageo, it is claimed by under pressure pub bosses.
Guinness maker Diageo announced increases a fortnight ago that industry experts calculate will add on 25c to the price of a pint of stout.
Drinkers fear it means a Guinness could top €8 in some pubs in Dublin city centre areas that are popular with tourists.
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Wicklow publican Paul Moynihan is president of the Vintners’ Federation of Ireland (VFI) and warned: “Publicans cannot withstand these increases.
“Prices are going through the roof. We cannot not pass on these increases.”
The VFI has over 4,000 members outside of the greater Dublin area who employ around 40,500 workers. Cork VFI chairperson Michael O’Donovan refused to pass on brewers’ previous price rises, but told the Irish Mirror “it just can’t be done this time”.
Diageo pledged last November not to increase its costs for the rest of 2022 but then revealed on January 10 a new 12c minimum hike from February 1.
The company explained that it had withheld increases amid the ongoing cost of living crisis but said it had absorbed cost increases “for as long as possible”.
It claimed that inflation means its products’ price will increase from next month and will add 12c to the price of a pint, excluding VAT.
It cost €7.60 for a pint of Guinness in some pubs in Dublin last March and €7.95 in the city in October, according to publicans.
Heineken announced two months ago that its prices would rise by an estimated 17c to 25c on December 1 due to “unprecedented cost increases”.
VFI president Paul is the third generation of his family to run Moynihan’s pub in Donard, Co Wicklow, since his grandfather bought it in the 1940s.
He told the Irish Mirror: “Diageo’s increase of 12c, plus VAT, is probably double the normal increases that we are used to absorbing.
“There’s no way publicans will not be able to pass on this price increase. There might be the odd one, but it’s so difficult now that I think all publicans will have to [pass it on].
“Costs are going through the roof. The public is aware of that, but we are still doing our best to offer value to our customers. They are having a tough time, too.”
Cork VFI rep Michael, who owns the Castle Inn on South Main Street, said: “We have had energy prices going up 300% since last summer.
“Publicans are trying to run a business, but we know that our customers are being squeezed at home and at work.
“Unfortunately, we have to pass on these price increases. Speaking to lots of my colleagues across the country, they are all struggling. We are trying to survive. It’s a very tough time for everyone.”
He added: “Last year, I didn’t put up the prices, but it just can’t be done this time.
“When the latest hikes came in November and now this month as well, the amount of the increases is biting. We cannot see any way of not applying these costs. We have to balance the books.”
The Licensed Vintners’ Federation, which represents pubs in Dublin, does “not comment on pricing matters”.
A spokesperson for the LVA old the Irish Mirror: “As a trade association, competition rules prevent the LVA from having any role in relation to pricing.”
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