Drinkers will have to fork out up to 25 cent more for certain pints in bars, pubs and restaurants nationwide.
Yesterday, Guinness owner Diageo announced a 12% wholesale price increase that will kick in from February 1.
Diageo - which also sells Smithwicks and Hop House 13 - said it withheld increases amid the ongoing cost of living crisis but had now absorbed cost increases “for as long as possible”.
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It claimed that inflation means all of its products’ price will increase from next month and will add 12 cent to the price it charges publicans per pint, excluding VAT.
An industry source said: “Some pubs across the country will be charging over €5, others €5.50, and €6.20 and higher, depending on their margins.
“With a 12 cent increase, excluding VAT, minimum values of 25 cent have been mentioned as the real cost of this hike.”
After the increase, a pint of Guinness will cost an average €5.20 across the country and considerably more in some parts of Dublin.
It cost €7.60 for a pint of Guinness in some pubs in Temple Bar last March, and €7.95 in October, according to publicans.
It comes after rivals Heineken already upped the price on all its draught kegs in December. The firm announced its prices would rise by an estimated 17 cent to 25 cent on December 1 due to “unprecedented cost increases”.
The company owns a wide range of well-known brands, which includes nine that are sold as draught:
- Heineken
- Moretti
- Orchard Thieves
- Lagunitas
- Beamish
- Murphys
- Tiger
- Coors
- Fosters
- Island’s edge
In a letter seen by the Irish Mirror, pubs were told: “Keg prices for Heineken and Coors lager will increase, equivalent to 17 cent per pint and at a pro-rata rate for all other draught brands and keg sizes.”
Before the increase, a pint of lager cost an average of €5.55, according to the CSO’s Consumer Price Index, meaning the price of Heineken’s pints are now closer to the €6 mark. However, this varies depending on venues.
The Vintners’ Federation of Ireland (VFI) said the latest pint price increase “couldn’t come at a worse time”.
The VFI branded yesterday’s announcement as “further bad news for the pub trade” that is already “grappling with soaring energy costs, inflation and the general increase in the cost of doing business”.
VFI chief 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.
“Due to the unprecedented cost of doing business, publicans will have to pass on this price increase to their customers, which is something they are very unhappy about.
“It’s well documented that energy costs are at an all-time high, while at the same time the trade faces losing the 9% hospitality VAT rate at the end of February. The trade can’t keep taking these hits on what appears to be an almost weekly basis.
“The VFI is calling on Diageo to reconsider its decision in light of the pressures on the pub trade.”
Commenting on the increase, a Diageo spokesperson said: “Like many businesses in Ireland, we are facing significant inflation in input costs across our operations. 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.”
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