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Heineken to hike keg prices by 9% due to 'significant' rise in production costs

The increase is equivalent to a 17 cent rise in the price of a pint, before VAT.

LAST UPDATE | Nov 10th 2022, 5:29 PM

HEINEKEN IS INCREASING its keg prices by 9%, following “significant increases in the cost of energy, packaging, and raw materials.”

The increase is equivalent to a 17 cent rise in the price of a pint, before VAT.

The company said, however, that it is not passing on the full impact of the higher prices onto its Irish business.

A spokesperson told The Journal: “Due to significant increases in the cost of energy, packaging, and raw materials, Heineken Ireland has been left with no choice but to amend its pricing in the Irish on-trade market.

“As a result, we have written to our on-trade customers to advise them of a 9% increase in wholesale draught prices to more closely reflect the current cost of producing and supplying our products.”

Other beers distributed by Heineken Ireland include Orchard Thieves and Coors Light.

The spokesperson added that the company “is not passing on the full impact of cost rises for its Irish business.

“Heineken sets the wholesale price that is charged for its products but has no role in relation to the price paid by the consumer, as this is set by individual operators within the on-trade sector.”

The letter to customers said that “businesses in Ireland continue to face exceptional inflationary challenges and our industry is no different.”

It said the price hike was “essential for us to offset, in part, the severe cost input pressures” created by spiralling inflation.”

One publican wrote on Twitter that they would no longer be serving Heineken products as a result of the new prices.

The Vintners’ Federation of Ireland, which represents publicans, said its members were “extremely concerned about this price rise.”

The federation’s CEO Paul Clancy said: “There is never a good time for such a price increase, but in the current climate where everyone is feeling the impact of soaring costs this is particularly poor timing.

“Due to the cost of doing business, most publicans will have to pass on the price increase to their customers.

These price increases are the last thing publicans or their customers need right now. The energy crisis has resulted in many pubs having to curtail their opening times to save money while other costs such as insurance and Sky Sports are making it extremely difficult for publicans to break even

Chief Executive of the Restaurants Association of Ireland, Adrian Cummins, said the price increase from Heineken will be passed on to customers.

Cummins said the association was surprised by the level of price increase announced, and said it will add to the cost of living crisis for consumers and for businesses.

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