Don’t raise drink prices, vintners urge suppliers

DRINK suppliers are being urged not to increase prices as speculation grows that a hike could be imposed as early as next month.

Publicans fear Diageo, the country’s largest drinks supplier, will announce a rise of as much as 7c on the price of a pint.

The Vintner’s Federation of Ireland, which represents over 6,000 publicans, has called for a price freeze this year, claiming bar owners will be forced to pass any increases on to customers.

VFI President Seamus O’Donoghue said: “They are already being squeezed at the moment, operating on really tight margins and will not be able to absorb an increase.”

Diageo brews Guinness and other leading brands, including Smithwicks, Harp and Carlsberg.

The VFI, whose members will gather in Cork tomorrow for their annual conference, will also call for a review of the smoking ban, which is being blamed for the closure of hundreds of pubs, particularly in rural areas.

In Cork city and county, 77 pubs have closed in just over a year. This is being replicated across the country, one member said yesterday.

“We’re looking for some sort of compromise,” Mr O’Donoghue said.

The conference will also hear criticism of plans for café licences. There is speculation the licences will be available for as little as €5,000.

The VFI has argued Ireland already has too many pub licences.

There are 13,000 licences, one for every 300 people.

Critics of the drinks industry have suggested this is the reason, along with high prices and demographic changes, that pubs are closing, rather than the smoking ban.

The introduction of café licences is aimed at curbing the binge-drinking culture in Ireland.

They will be available to owners of small premises serving hot food and will be non-transferable.

The introduction of café licences was recommended by the Commission on Liquor Licensing.

Its report said that the restrictive nature of the licensing system resulted in the development of ‘super pubs’ as owners attempted to cover the huge cost of licences. Bar licences currently change hands for approximately €170,000.

The VFI said it could not comment on the reported €5,000 fee for a café licence, as it was only speculation.

However, a source said it would be “unbelievable” if the fee is set that low.