The decision by Diageo to increase the price of draught beer next month has been described as a "hammer blow" for the hospitality industry ahead of the tourist season.
Earlier Diageo said the increase will impact its entire on-trade draught product range, including Guinness, Guinness 0.0, Hop House 13, Harp, Rockshore, Smithwicks and Carlsberg.
It said the change would add the equivalent of 6 cent to a pint and 9 cent a pint in the case of Guinness 0.0.
The increases are taking place from April 15.
"We continue to experience rising input costs across our Irish business operations," a Diageo spokesperson said.
"In order to offset this, we have advised our on-trade customers that there will be an increase to the list prices on our full draught product range," the spokesperson added.
It is the first time that Guinness 0.0 prices have increased since the non-alcoholic stout first launched.
The bigger 9 cent a pint rise is understood to reflect additional costs associated with producing Guinness 0.0 and serving it on draught.
Punters in Cork have been reacting to the news
The increases will further hike the cost for consumers of drinking in a pub at a time when inflation remains elevated.
Publicans will be faced with the dilemma of whether to pass the increase on in full or absorb some of it, at a time when they are facing high costs of doing business.
Last year Diageo also increased its beer prices a number of times due to rising costs.
'We are making ourselves anti-competitive'
Michael O'Donovan, Cork Chair of Vintner's Federation of Ireland said that this was bad news for the hospitality industry after a strong St Patrick's celebration.
Speaking on RTÉ's Drivetime, he said it was a "hammer blow for the industry today heading into the tourist season".
"It's not a good image to be giving to the tourists who are going to come here when we are competing against Spain, France and Portugal," he said.
"We are making ourselves anti-competitive".
He added that businesses have seen cost increases ourselves this year, and claimed that a lot of them are Government-led.
Mr O'Donovan said Diageo have shareholders and made vast profits across the world last year and that the vintners had hoped that Diageo would stand with them and support them given the increases this year.
"We are hoping our other breweries will stand with us and support us, and we won't see any more price increases. All of us are suffering in hospitality, we’ve seen profits going down to single digits".
Ireland is getting very close to a place where regulars cannot afford to go to the pub, he said.
'Industry on the brink'
Earlier, the VFI said the move underlines the need for Government to introduce further supports for a sector experiencing unprecedented costs pressures.
The VFI said it was deeply concerned over the timing and magnitude of the increase, highlighting the severe impact it will have on the already struggling pub trade.
"The announcement by Diageo is not just disappointing, it's a critical hit to an industry on the brink. Publicans have been navigating a storm of rising costs, including the increase in minimum wage, additional mandatory sick days and the impending pension auto-enrolment scheme," VFI's CEO Pat Crotty said.
"This latest price hike is a blow they cannot afford," he added.
Mr Crotty said the Government must come forward with support measures for the trade as the Increased Cost of Doing Business grant, while welcome, is not an adequate response.
"The VFI is calling for further supports to include a reduction in excise, a return to the 9% VAT rate for pubs serving food and a reduction in employer's PRSI. Publicans can’t be expected to take all these hits without meaningful support," he added.
The VFI also appealed to the public to understand the challenges facing their local pubs and to support them during these trying times.
"We know our customers are in the middle of their own cost of living crisis so the last thing our members want to do is increase prices. Unfortunately most publicans will have to pass on this increase as it's all but impossible to absorb given the rise in labour costs and other soaring charges," Mr Crotty said.
He also called on Diageo to commit to no further increases in the price of a pint for the rest of the year.
