Beamish announces price freeze

IRELAND’S oldest brewery has thrown down the gauntlet to its competitors by announcing a price freeze.

Cork-based brewing institution Beamish & Crawford also called on its competitors Diageo and Heineken to row back on plans to introduce their second price increase this year.

Beamish yesterday said it will not be increasing the price of any of its brands including Beamish Stout, Foster’s, Miller, San Miguel and Beamish Red Irish Ale. The price freeze will last until next year, managing director Alf Smiddy said.

Last month, Diageo and Heineken announced their second price hikes this year. But Mr Smiddy believes they are not justified.

“A second price increase at this critical time for the economy is ludicrous,” he said. “It fuels further inflation and flies in the face of a commitment given by large companies to play their part in restoring competitiveness. I would urge Diageo and other competitors to fully row back on this. We believe that Diageo doesn’t need a second price increase this year.

It is the easy option and has a spiralling affect — it is absolutely wrong.

“Diageo already makes super normal profits in Ireland,” said Mr Smiddy.

However, Diageo dismissed his comments. “It is illegal for competitors to agree or even discuss their pricing strategies,” a spokesperson said. “We have no intention of having any discussions with Beamish & Crawford regarding our pricing and their strategies are a matter for them.”

Diageo cited increased costs in energy, labour and raw materials for its second price increase this year.

Guinness drinkers are facing a 10 cent hike in the price of their pint from Monday. Diageo’s other brands such as Smithwicks, Carlsberg, Budweiser and Harp will also be affected.

Heineken lager and Murphy’s stout drinkers can also expect a price hike soon.

The average pint of Guinness sells for €3.95, the average price of a pint of Heineken is around €4.40. The average cost of a pint of Beamish is about €3.30.

Mr Smiddy said Beamish & Crawford is experiencing the same increases in raw materials and energy, but it will continue to seek ways to manage overheads so that the extra costs are not passed on to customers.

Padraig Cribben, the chief executive of the Vintners’ Federation of Ireland, welcomed the price freeze.

“We have already expressed our disappointment with other beer suppliers’ decision to impose a second price rise in 2008,” he said.

Donall O’Keeffe, chief executive of the Licensed Vintners’ Association, said Dublin publicans also welcomed the price freeze in a background of declining draught beer sales.