Diageo price rise could mean 20c increase to cost of a pint of Guinness

A 7c Diageo price increase to the trade means publicans would need to increase the price by around 20c in order to maintain current margins

The price of a pint is set to rise as Guinness owner Diageo announced plans to increase prices of draught products to publicans by 7c.

The price of a pint is set to rise as Guinness owner Diageo announced plans to increase prices of draught products to publicans by 7c - with punters set to face a 20c price increase.

Diageo said higher costs were behind the price increase, with the company facing increases include wage inflation, rising energy costs in Ireland, and increased logistical and regulatory requirements. The price increases are effective from February 2. 

"Industry-wide cost pressures remain elevated for businesses, and in order for Diageo to maintain sustainable operations in Ireland, we have advised our on-trade customers that there will be an increase to the list prices on our full draught product range. This includes an increase equivalent of €0.7c per pint of Guinness, and €0.10c per pint of Guinness 0.0," a statement from Diageo said. Diageo's other products include Rockshore, Smithwicks, Carlsberg, and Hop House 13. 

Publicans have hit out at Diageo's price increases, which they say will pile pressure on pubs "already struggling to survive" and warning the costs are likely to be passed on to consumers. The Diageo price increase does not include vat, and publicans will likely need to increase the price 'at the pump' by around 20c in order to maintain their current margins.

It remains to be seen if Heineken, the producer of drinks including Murphys and Beamish, will follow their rivals into a price increase. “We never comment on commercial terms," a spokesman for Heineken Ireland said on Tuesday.

“Publicans are being hit from all sides, but drink costs are the biggest burden they face. This latest price increase from Diageo will put even more pressure on pubs that are already operating on extremely tight margins. Many will be left with no option but to pass this on to customers, which helps nobody,” said VFI chief executive Pat Crotty.

“Our members understand that suppliers also face rising costs, but there comes a point where pubs simply cannot keep carrying these increases alone. Pubs are at the heart of local communities and suppliers depend on them for their route to market. We expect suppliers, including Diageo, to recognise that reality and to support VFI members rather than repeatedly adding to their cost base.” 

Mr Crotty said repeated supplier price increases are contributing to rural pub closures, with pubs already under pressure from declining footfall and rising operating costs. 

“This isn’t just about the price of a pint. It’s about the long-term viability of pubs across the country. Community pubs are being pushed to the brink, and continued increases in drink prices only accelerate that trend.” 

The VFI has called for an excise rebate scheme for draught beer and cider sold in pubs.