Diageo to raise price of a pint by 6c in third hike in 18 months
Effect Hop Draught Rockshore Will April Into To And Will And 15 Increase Guinness, The E Apply House Pany's Carlsberg, The 13 Products: From
The price for a pint is to increase by 6c — the third hike in 18 months.
The announcement was made by Guinness brewer Diageo in a letter sent out to publicans on Monday. The increase will come into effect from April 15 and will apply to the company's draught products: Guinness, Carlsberg, Rockshore and Hop House 13.
Diageo blamed rising input costs across all its operations in Ireland despite energy costs and inflation decreasing in recent months.
The company stated: "In order to offset this, we must pass on some of this additional costs to our customers.
"As a result we are adjusting the list prices on our draught product range. This includes Guinness which will increase by the equivalent of €0.06 per pint or €5.28 per 50 litre keg.
"These changes will take effect from 15th April 2024 and deliveries made on or after this date will be charged at the new prices.
"We remain committed to supporting your business and the wider hospitality sector and value your continued support."
Diageo previously increased the price of a pint by 12c in February last year and then by a further 4c again last July.
Vintners reacted with fury at the announcement, with the group representing pubs outside Dublin calling it “the latest hammer blow to the pub trade”.
Businesses are already operating within tight margins, amidst a “storm of rising costs” such as the VAT rate, minimum wage increases, energy bills and rent hikes, they said.
“The announcement by Diageo is not just disappointing, it's a critical hit to an industry on the brink,” said Vintners Federation of Ireland (VFI) CEO Pat Crotty.
“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.
“At the very least we are calling on Diageo to commit to no further increases in the price of a pint for the remainder of 2024.”
Publican sources said they believe Ireland is an “easy target” for Diageo to hike prices in to offset poorer performance in other parts of the world.
“Guinness has never been as popular, it has an unprecedented market share and is a very popular product,” one publican said. “They’ve decided to take advantage of their popularity. Are they under such pressure they can’t make savings their end? This will put a huge amount of pressure on guys in rural Ireland.”
Most publicans are now expected to put up the price of a pint by at least 10c to 20c as they take into account both the 6c hike plus the recent increase in the minimum wage.
Since the onset of the pandemic, the average price of a pint has increased by €1 according to CSO figures.
The CSO data shows that in February 2020, the average price of a pint of stout was just €4.67 while a pint of lager was €5.06. However, in February 2024, the average price of a pint of stout in Ireland stood at €5.64 while the average pint of lager cost €6.06.
Publicans now fear that other companies will follow suit.