Publicans 'must absorb rise in drink prices'

The Consumers’ Association has called on publicans to absorb the possible 15c increase in the price of a pint next week

The Association said they would be punished by their customers if they passed it on.

Reports this morning said the increase was due to a six cent rise in the wholesale prices charged by the multinational drinks firm Diageo, which makes Guinness, Smithwicks, Harp, Carlsberg and Budweiser.

Publicans are expected to pass the increase on to their customers and to add a further increase themselves to maintain their profit margins.

This morning’s reports said that, with Government duties included, the final price rise would average 15c.

Spokesman Dermot Jewell said: "I think sales will drop. There’s no doubt of that if that level of price increase goes through.

"The worst thing that the publicans can do is add to the increase from Diageo because it will damage their sales.

"They’re going to have to think long and hard before they go the whole hog and put that level of increase on the pint. It just won’t work."