Drinkers hit for six as Guinness increases prices
Yesterday, Guinness UDV Ireland, the trading arm of Diageo Ireland, informed its customers it will increase the wholesale price of draught beer products by €5.45 per keg.
Corporate affairs director Pat Barry said the company had not increased its draught products since March. While it was a difficult decision to make, there was sound economic reasoning behind the increase, he said.
Guinness sales figures for last year, which are expected to be released next week, are expected to show a significant drop.
Mr Barry pointed out that beer sales generally have “suffered quite a bit” and overall alcohol consumption in Ireland has declined in recent times.
Guinness products like Smithwicks, Harp, Carlsberg and Budweiser will continue to benefit from increased investment in quality and marketing, two of the areas into which the increase will be poured.
The company, Mr Barry said, is not applying any price increase on its packaged beer, spirits, wines or ready-to-drink products.
This latest hike represents a 4.5% increase on the list price and will translate into an increase of six cent a pint.
The company is continuing its drive to restore consumer confidence which has deteriorated over the last 18 months.
Mr Barry said while there were good economic indicators, consumers were still very cautious about their spending.
