Heineken ready to raise cost of drinks

PINT drinkers are to be hit in the pocket for the second time this year with the price of stout, ale and lagers all set to increase.

With Diageo confirming it is to raise the wholesale price of all its products — including Guinness, Smithwicks, Budweiser and Carlsberg — later this month, Heineken admitted it is likely to push up the cost of its beverage.

“The reality is Heineken is reviewing its pricing strategy,” said a spokesman for the company, which is responsible for Murphy’s Stout, Coors Light as well as speciality beers.

“Mindful of significant cost inflation, it’s likely that a price increase is in the pipeline,” he said.

Diageo is to raise its wholesale prices to vintners by 2% excluding VAT — or about 10 cent per pint — from mid-September but a spokesman was unable to comment on the timing of any future increases.

Prices already went up last March when Diageo raised its wholesale costs by four cents per pint, supplemented by an additional 10c-15c by publicans.

“We don’t determine what price the product is sold at, we increase our own price,” said the spokesman.

“It’s never an easy decision but it is due to the significant rise in costs.”

Beamish & Crawford wouldn’t say whether they intend to raise their prices, saying only they were “surprised their competitors had decided to take a second price increase in one year”.

Consumer Association of Ireland chief executive Dermott Jewell said he was surprised at the hike, given the difficulties already experienced by publicans countrywide.

“If the price increases are to go on, I’ve no doubt customer figures will continue to fall off,” he said.