The bad news just keeps on pouring.
The price of a pint is set to increase for the third time in 18 months this April.
The announcement was made by Ireland’s biggest brewer, Diageo, in a letter sent to publicans yesterday (March 25).
The increase, of six cents, will come into effect from April 15 and will apply to all of their draught products – Guinness, Carlsberg, Rockshore, and Hop House.
Diageo claims that the rise is due to rising input costs.
Price of a pint to rise in Irish pubs from April.
In the statement, Diageo said: “We must pass on some of this additional costs to our customers.
“As a result we are adjusting the list prices on our draught product range. This includes Guinness which will increase by the equivalent of 0.06 per pint or 5.28 euros per 50 litre keg.
“These changes will take effect from 15th, April, 2024 and deliveries made on or after this date will be charged at the new prices.
“Please be reminded that the retail pricing is at your discretion, and you remain free at all times to set the price of our products. We remain committed to supporting your business and the wider hospitality sector and value your continued support.”
Responding to the news, the Vitners Federation of Ireland released a statement.
The statement reads: “Diageo’s decision to increase the price of a pint is the latest hammer blow to the pub trade and underlines the need for Government to introduce further supports for a sector experiencing unprecedented costs pressures.”
They continued: “Diageo’s announcement of a 6-cent increase in the price of a pint comes on the heels of a previous 12-cent increase in February 2023, compounding the financial pressures faced by publicans across Ireland.
“The VFI has expressed deep concern over the timing and magnitude of this increase, highlighting the severe impact it will have on the already struggling pub trade.”
VFI CEO, Pat Crotty, says: “The announcement by Diageo is not just disappointing, it’s a critical hit to an industry on the brink. Publicans have been navigating a storm of rising costs, including the increase in minimum wage, additional mandatory sick days and the impending pension auto-enrolment scheme.
“This latest price hike is a blow they cannot afford.
“The government must come forward with support measures for the trade as the Increased Cost of Doing Business grant, while welcome, is not an adequate response. The VFI is calling for further supports to include a reduction in excise, a return to the 9% VAT rate for pubs serving food and a reduction in employer’s PRSI. Publicans can’t be expected to take all these hits without meaningful support.
“We know our customers are in the middle of their own cost of living crisis so the last thing our members want to do is increase prices. Unfortunately most publicans will have to pass on this increase as it’s all but impossible to absorb given the rise in labour costs and other soaring charges.
Crotty concluded: “At the very least we are calling in Diageo to commit to no further increases in the price of a pint for the remainder of 2024.”
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