A six cent increase in the price of a pint of Guinness may result in an overall hike of between 15 and 30 cent, particularly in rural areas, drink retailers have warned.
Guinness owners Diageo announced the price increase on Wednesday, with the six cent rise applying across a range of beers including Guinness, Hop House 13, Rockshore, Smithwicks and Carlsberg.
This will be the fourth price rise imposed by Diageo in two years.
The price increase of non-alcoholic Guinness 00 is to be nine cent to cover the extra cost of extracting the alcohol from the beer, Diageo said.
However, drinkers may well find the price increase is even more when it comes into effect on February 3rd.
According to the Vintners Federation of Ireland (VFI), in the last two years Diageo has put the price of the pint up by a total of 28 cent. The latest increase, once additional VAT, excise duties and publican’s margins are calculated, is likely to see the price at the counter increase by as much as 20 cent per pint.
Industry body Drinks Ireland said the price rise could be as high as 30 cent.
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In a statement the VFI sharply criticised the increases saying publicans would have no choice but to pass them on to consumers, “further impacting already struggling pubs and their loyal customers”.
The federation said publicans were grappling with an unprecedented cost of doing business, with rural pubs in particular having no choice about the increases. VFI chief executive Pat Crotty said “this isn’t just about the price of a pint. It’s about the survival of pubs across Ireland. The reality is that small, community-based pubs are at breaking point. Without additional support, particularly in rural areas, many will simply not survive.
“We know that Diageo and other suppliers value the role pubs play in Irish life so it’s time to step up with concrete support measures. At the same time we need government intervention to address the ongoing cost-of-living crisis and the soaring costs faced by businesses.”
The Licensed Vintners Association, which would have a large Dublin membership, said it does not comment on prices.
Asked if Heineken would now increase the price of its range of beers which includes Murphy’s, Beamish and Fosters, a spokesman said: “We wouldn’t comment on commercial terms.”
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