On-trade

Heineken price increase – “..worst possible time…”

Following Heineken Ireland’s letter to the trade informing it of a 17 cent per pint price increase, consumers are likely to be shocked by the estimated 25-40 cent rise in prices that may be sought across the countermount from the 1st of next month.

 

 

Consumers are likely to be shocked by the estimated 25-40 cent rise in prices that may be sought across the countermount from the 1st of next month.

Consumers are likely to be shocked by the estimated 25-40 cent rise in prices that may be sought across the countermount from the 1st of next month.

Heineken has described as “significant” its own rise in input costs including “unprecedented” hikes in raw materials, energy and packaging costs.

“We’ve been working hard to minimise the impacts of these increases but unfortunately have not been able to mitigate all of them,” Heineken’s letter explained.

The increase applies to all draught products in Heineken’s portfolio.

So far, Diageo and the other beer suppliers have not responded to Heineken’s move other than Diageo’s announcing that it will not be raising prices “this year”.

Heineken also stated that it was not passing on the full cost of its own increase in costs to customers.

A 50-litre keg of Heineken costing €169 at present will go up to €185 from December the 1st representing a 9% increase before VAT.

“As a Federation we cannot negotiate prices with suppliers,” stated Vintners Federation of Ireland Chief Executive Paul Clancy in response to the increase announced, “Having said that, we know members are extremely concerned about this price rise.

“There’s never a good time for such a price increase but in the current climate where everyone is feeling the impact of soaring costs this is particularly poor timing,” he continued, “Due to the cost of doing business, most publicans will have to pass on the price increase to their customers.

“These price increases are the last thing publicans or their customers need right now. The energy crisis has resulted in many pubs having to curtail their opening times to save money while other costs such as insurance and Sky Sports are making it extremely difficult for publicans to break-even.

“Pub customers are also going through their own cost-of-living crisis and we know our members are desperately unhappy about having to pass on this increase.”

 

 

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