Diageo price increase further blow to trade

Diageo's announcement of an increase in the price of its beers (including Guinness) has been described by the Vintners’ Federation of Ireland as further bad news for a pub trade already grappling with soaring energy costs, inflation and the general increase in the cost of doing business.

 

Publicans will 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.

According to the VFI, members are extremely frustrated about the situation and are calling on Diageo to reconsider the move.

“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,” said VFI chief executive Paul Clancy, “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’re 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,” he concluded.

The price increase is due to come into effect on the 1^st February.