skip to main content

Publicans likely to pass on Diageo price increase - VFI

The company blamed rising costs for its decision.
The company blamed rising costs for its decision.

An increase in the cost of draught beers supplied by Diageo will most likely have to be passed on to consumers, according to the President of the Vintners' Federation of Ireland.

Drinks group Diageo is to increase the price it charges for draught beer by 12c per pint, excluding VAT.

The increase applies to its entire range of draught beers - including Guinness, Rockshore, Carlsberg, Harp, Hop House 13 and Smithwicks.

The company blamed rising costs for its decision.

"Like many businesses in Ireland, we are facing significant inflation in input costs across our operations," it said in a statement.

"We have absorbed these costs for as long as possible but unfortunately, we can no longer continue to do so."

The price hike will take effect from 1 February and the company has written to customers in the on-trade to inform them.

VFI President Paul Moynihan said members are angry about the price increase.

Speaking to RTÉ's Drivetime, he said: "It's a huge increase and the timing just after Christmas, going into a quiet time, but I think what's really shocked our members is the 6.5% increase, that's huge."

He said that publicans are also grappling with rising energy costs.

"The costs that we have seen grow in the last year, I think there are very few publicans in the country that will be able to absorb this, I think it will have to be passed on," he said.

Earlier the Vintners' Federation of Ireland said in a statement that the announcement was further bad news for the pub trade, which is already grappling with rising energy costs, inflation and the general cost of doing business.

"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."

In November, Heineken also announced an increase in prices for beer, but following push back from customers partially delayed some of the rise into this year.