THE PRICE OF draught pints are set to rise again, Diageo has confirmed. 

Guinness, Harp, Smithwicks and Hophouse 13 will go up by six cents per pint on 3 February, excluding VAT. Guinness 0.0 will increase by nine cents per pint, excluding VAT.

Once VAT, duty and the pub margin are added it could result in an extra 30 cents for a pint – meaning pints could be well over €6 in many pubs and more than €7 in Dublin, according to Drinks Industry Ireland. 

This will be the fourth price rise in two years.

The Vintners’ Federation of Ireland (VFI) said the latest price hike is “a blow to an industry already on its knees” and many publicans will have to pass on the increase to consumers.

A Diageo spokesperson confirmed the increase, telling The Journal: “Like many businesses, we continue to face increased costs across our Irish operations.

“In an effort to offset these costs and to maintain a sustainable business in Ireland, we have advised our on-trade customers that there will be an increase to the list prices on our full draught product range.”

It is understood that Diageo is increasing the cost of its draught range due to wage inflation and the continuing rise in energy costs.

Pubs ‘squeezed from every angle’ 

Pat Crotty, VFI CEO, said “publicans are being squeezed from every angle – rising energy costs, higher wages and government-imposed charges”.

“This latest price increase from Diageo adds yet another layer of financial pressure on pubs already struggling to keep their doors open.”

Crotty said it “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.

The VFI is among those who have repeatedly called for the hospitality VAT rate to be reduced from 13% to 9%. Under the new Programme for Government, it is understood that this reduction will happen. 

As government formation talks reach a conclusion, the VFI has called on the new coalition to introduce more targeted reliefs for the pub sector including a reduction in excise duty, a reduction in the top VAT rate from 23% to 21%, and employer PRSI reductions.