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Guinness prices to rise AGAIN with 30c hike in major blow to punters amid ‘squeezed from every angle’ pub survival fears

THE price of a pint is set to rise by up to as much as 30c in a major blow to punters and pubs alike.

Diageo has told publicans of a price increase to its products in what is the fourth hike in two years.

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Diageo, the maker of Guinness, is raising the price of draught kegs
Diageo, the maker of Guinness, is raising the price of draught kegs
Bryn Colton/Getty Images

The maker of Guinness, Harp, Smithwicks and Hop House 13 is raising the price of those draught kegs by 6c per pint on February 3.

Guinness 0.0 will meanwhile be raised by 9c per pint.

But with VAT, duty and pub margins added, pints of these drinks could end up costing punters an extra 30c.

Drinks Industry Ireland said this could mean that pint prices in Dublin could soar to well over €6 and as much as €7 in places.

CSO data shows that the national average price of a pint of stout has risen €1.15 from the start of the Covid-19 pandemic in 2020 to November 2024 – €4.67 to €5.82.

In the same time frame, a pint of lager has gone up €1.19, from €5.06 to €6.25.

A Diageo spokesperson said: “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.”

The Vintners’ Federation of Ireland said the news was “a blow to an industry already on its knees”, with many pubs obliged to pass on the increase to their customers.

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

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

“Our members understand that costs are rising across the board, but what they need now are meaningful supports to help absorb these increases.

“We need suppliers and the government to recognise the unique pressures facing publicans and work with us to find solutions that can sustain this vital sector.

“The reality is that small, community-based pubs are at breaking point. Without additional support, particularly in rural areas, many will simply not survive.

VALUED ROLE

“We know that Diageo and other suppliers value the role pubs play in Irish life, so it’s time to step up with concrete support measures.

“At the same time, we need government intervention to address the ongoing cost-of-living crisis and the soaring costs faced by businesses.

“Our message is clear: publicans cannot keep absorbing these hits alone.

“The government and suppliers need to act now to ensure the survival of this vital part of Irish culture.”

‘TAKING THE P***’

One pub posted a picture of a letter detailing the price increase and wrote: “Taking the p*** each year now #diageo.”

The letter states: “I am writing to inform you of an increase to the list prices on our draught product range in the Republic of Ireland, as detailed in Annex 1 to this letter.

“This includes Guinness which will increase by the equivalent of €0.06 per pint or €5.28 per 50 litre keg.

“These changes will take effect from Monday 3rd February 2025 and deliveries made on or after this date will be charged at the new prices.

‘INCREASE IS ESSENTIAL’

“As the cost of running our business continues to rise, this increase is essential for us to maintain sustainable operations in Ireland.

“We remain committed to supporting your business and the wider hospitality sector, and value your continued support.

“To note, Trade Term discounts will increase in line with this list price increase.

“Please be reminded that retail pricing is at your sole discretion, and you remain free at all times to set the price of our products.”

VAT RATE CUT

The VFI has lobbied for the hospitality VAT rate to be cut to 9 per cent from 13.5 per cent and it is understood that this will now happen as part of the incoming Programme for Government.

Meanwhile, new brewery Changing Times said it will not be increasing its prices in 2025.

Ronan Lynch of The Swan pub, one of the founding publicans of Changing Times, said: “We might be known as Changing Times, but one thing that won’t be changing this year is our prices, unlike some others in the market.

“We thought it was important to make that clear, so that our customers know they will be paying the same prices today and tomorrow as they did when we launched last November.

“Being a locally produced, Irish brewery we know how disappointing people find regular price increases from some of the major operators.

“So at the start of 2025, we wanted to give this firm commitment to anyone trying our refreshing beers.”


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