The price of pints to increase next month, Diageo announces

The price for a pint is to increase by 6c - the third hike in 18 months.

International alcohol distributer Diageo announced the price hike in a letter sent out to publicans on Monday. The increase will come into effect from 19 April and applies to the company's draught beers, including Guinness, Harp, Carlsberg, Hop House 13, Smithwicks and Rockshore. Guinness 0.0, the non-alcoholic alternative, will increase by 9c.

Diageo blamed rising input costs across all national operations despite energy costs and recent economic deflation.

"In order to offset this, we must pass on some of this additional costs to our customers," the company stated. "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."

Diageo previously increased the price of a pint by 12c in February last year and then by a further 4c again last July.

The Vintners Federation of Ireland (VFI) called it a "hammer blow" to an industry already fighting to stay afloat.

“The announcement by Diageo is not just disappointing, it's a critical hit to an industry on the brink,” said VFI's CEO Pat Crotty.

Today's price increase from @DiageoIreland further bad news for the pub trade already coping with increased labour costs. Government must step up with further supports - reduce excise, lower VAT rate https://t.co/9kCABIhsrK

— VFI (@VFIpubs) March 26, 2024

“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. This latest price hike is a blow they cannot afford.”

On top of today's announcement, this series of financial pressures endangers the lifeblood and existence of the trade in its entirety.

Crotty also mentioned that while government supports, such as the Increased Cost of Business grant, are welcome, it's not enough to reinforce the industry. As such, VFI has called for increased services, including a reduction of excise and employer's PRSI and a return to the 9% VAT rate for pubs.

“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, " Crotty continued. "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."

Vintners called on Diageo to commit to no further price hikes this year.