On-trade

Diageo’s latest price hike is a blow to publicans and consumers

Diageo’s announcement comes at a time when publicans are grappling with an unprecedented cost of doing business and is considered a blow to an industry already on its knees.
Net sales of Guinness grew by over 76%, benefitting from the partial recovery of the on-trade as Irish Government restrictions eased during the first half of Diageo's financial year.

Once VAT, duty and the pub margin are added it could mean 30c extra for a pint “at the tap” or over €7 a pint in some pubs

Diageo has notified publicans that the price of a pint is to increase yet again. This will be the fourth price rise in two years.

Guinness, Harp, Smithwicks, Hophouse 13 and Harp will go up by 6 cent per pint on 3 February  bringing pint prices to well over €6 and even beyond €7 in Dublin.

But industry sources have warned that once VAT, duty and the pub margin are added it will mean 30c extra for a pint “at the tap”.

The Vintners’ Federation of Ireland (VFI) has criticised Diageo’s decision to increase prices again saying it will force many publicans to pass on the increase to consumers, further impacting already struggling pubs and their loyal customers.

According to Pat Crotty, VFI CEO: “Publicans are being squeezed from every angle – rising energy costs, higher wages and government-imposed charges. This latest price increase from Diageo adds yet another layer of financial pressure on pubs already struggling to keep their doors open.

“Our members understand that costs are rising across the board, but what they need now are meaningful supports to help absorb these increases. We need suppliers and the government to recognise the unique pressures facing publicans and work with us to find solutions that can sustain this vital sector,” he says.

Crotty goes on to say that it isn’t just about the price of a pint. It’s about the survival of pubs across Ireland. “The reality is that small, community-based pubs are at breaking point. Without additional support, particularly in rural areas, many will simply not survive.

“We know that Diageo and other suppliers value the role pubs play in Irish life, so it’s time to step up with concrete support measures. At the same time, we need government intervention to address the ongoing cost-of-living crisis and the soaring costs faced by businesses.”

As Government formation talks reach a conclusion, the VFI is calling on the government to introduce targeted reliefs for the pub sector, including a reduction in excise duty, a reduction in the top VAT rate from 23% to 21%, a lower VAT rate for pubs serving food and employer PRSI reductions to help mitigate rising labour costs.

Crotty says: “Our message is clear: publicans cannot keep absorbing these hits alone. The government and suppliers need to act now to ensure the survival of this vital part of Irish culture.”

No changes for Changing Times

Changing times has committed to zero price increases in 2025

In response to yesterday’s announcement from Diageo, Changing Times Brewery, the new brewery backed by some of the best known publican families in Dublin, has confirmed they will not be increasing their prices in 2025.

“We might be known as Changing Times, but one thing that won’t be changing this year is our prices, unlike some others in the market,” said Ronan Lynch of the Swan, one of Changing Times Brewery’s founding publicans. “We thought it was important to make that clear, so that our customers know they will be paying the same prices today and tomorrow as they did when we launched last November. Being a locally produced, Irish brewery we know how disappointing people find regular price increases from some of the major operators.  So at the start of 2025, we wanted to give this firm commitment to anyone trying our refreshing beers.”


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