The price of many popular pints is set to increase in what has been described as a major blow “to an industry already on its knees”.
A six-cent increase on Diageo products will take effect from early next month, the Irish Mirror reports. It will be the fourth price hike in the past two years.
The increase will come into effect from February 3 and will apply to all the company’s draught products – Guinness, Carlsberg, Rockshore and Hop House 13.
The announcement was made by Diageo in a letter sent out to publicans in recent days and will bring pint prices to well over €6 in many places, with some in the industry warning that once VAT, duty and margins are added, punters could be paying 30c extra for a pint in the pub.
The Vintners’ Federation of Ireland (VFI) said pubs across the country face “an unprecedented cost of doing business”, and the impending price hike will force many to pass on the increase to consumers.
The group described the increase as “a blow to an industry already on its knees”.
Cork pubs in particular have been struggling. Figures revealed last year that Cork has some of the highest bar closure rates in the country with a 31.4% decrease in pubs and bars since 2005.
That’s 1-in-3 Cork pubs closed in the last 20 years – nearly 400 businesses.
VFI CEO Pat Crotty said: “Publicans are being squeezed from every angle-rising energy costs, higher wages and government-imposed charges.”
In a statement, he described the Diageo price increase as “yet another layer of financial pressure on pubs already struggling to keep their doors open. Our members understand that costs are rising across the board, but what they need now are meaningful supports to help absorb these increases.
“We need suppliers and the government to recognise the unique pressures facing publicans and work with us to find solutions that can sustain this vital sector.”
Mr Crotty continued: “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 VFI has called for the Government to introduce targeted reliefs for the pub sector. Mr Crotty said: “Our message is clear: publicans cannot keep absorbing these hits alone. The government and suppliers need to act now to ensure the survival of this vital part of Irish culture.”