DIAGEO HAS CONFIRMED that it will increase the price of its pints next month.

A Diageo spokesperson confirmed to The Journal that the cost of their draught products will increase by a further seven cent per pint (excluding VAT) from 2 February, while their non-alcoholic product Guinness 0.0 will increase in price by 10 cents.

It’s a move that could push the cost of a pint well over €6 in many parts of the country, and beyond €7 in Dublin pubs.

The latest rise will be the fifth price increase from Diageo in just three years.

Diageo is one of the world’s largest food and drinks companies and owns a significant share of the Irish drinks market, including Guinness, Hop House 13, Carlsberg, Harp, Rockshore and Smithwicks, among others.

The Vintners’ Federation of Ireland (VFI) has strongly criticised the decision, warning that many pubs will have little choice but to pass the increase on to customers.

“Publicans are being hit from all sides, but drink costs are the biggest burden they face,” VFI chief executive Pat Crotty said.

“This latest price increase from Diageo will put even more pressure on pubs that are already operating on extremely tight margins,” he added.

Many will be left with no option but to pass this on to customers, which helps nobody.

Crotty said pubs are “at the heart of local communities” and warned that repeated supplier price hikes are contributing to rural pub closures, where businesses are already under severe strain.

Publicans have previously noted that a single-digit rise in the cost of pints can mean further “at the pump” increases of around 20c when they come into force.

Related Reads

Why does Diageo keep raising the price of a pint?

“This isn’t just about the price of a pint,” Crotty said.

“It’s about the long-term viability of pubs across the country.”

The VFI has again called on both suppliers and government to recognise the scale of the challenge facing the sector, urging measures such as an excise rebate on draught beer and cider and supports to ease rising labour costs.

“Without action, more pubs will close,” Crotty said, “and once they’re gone, they’re gone for good.”

The cost of alcohol products in Ireland are more than two times higher than the EU average, according to Eurostat.