Diageo increasing cost of beers by 12c in Ireland

Diageo increasing cost of beers by 12c in Ireland

DIAGEO, the parent company of Guinness, will increase the price of its beers in Ireland from next month due to inflation.

The price will increase by 12c per pint, excluding VAT, across its entire range of draft beers including Guinness, Rockshore, Carlsberg, Harp, Hop House 13 and Smithwicks.

The increase will come into effect from 1 February.

"Like many businesses in Ireland, we are facing significant inflation in input costs across our operations," Diageo said in a statement.

"We have absorbed these costs for as long as possible but unfortunately, we can no longer continue to do so.

"As a result, we have written to our customers in the on-trade to advise them of an increase on our draught beer list prices of 12 cent per pint, exclusive of VAT."

Heineken announced in November that it was increasing the price of its kegs by 9%, equating to an additional 17c plus VAT on the price of a pint.

Commenting on the increase announcement, Taoiseach Leo Varadkar said it will not in itself put any pubs out of business, but in conjunction with other costs will lead to financial hardships for many.

The Taoiseach also encouraged people to apply for the Temporary Business Energy Support Scheme (TBESS).

In a tweet, the Vintners' Federation of Ireland said the increase was "very bad news for the pub trade, on the back of energy costs, inflation and threat to VAT 9%."

Vintners’ CEO Paul Clancy said:

"Following the increase in Heineken prices in December, this is the second major price increase our members are having to deal with in a few short weeks. Publicans are getting hammered from every angle at the moment and this news from Diageo is a further blow to the trade.

"We’re heading into the quietest few months of the year for the trade so the increase in the price of a pint couldn’t come at a worse time," Clancy said.