Pint Price Hike Imminent
An increase in the cost of draught beers supplied by Diageo will most likely have to be passed on to consumers, according to the president of the Vintners' Federation of Ireland.
Drinks group Diageo is to increase the price it charges for draught beer by 12c per pint, excluding VAT. The increase applies to its entire range of draught beers - including Guinness, Rockshore, Carlsberg, Harp, Hop House 13 and Smithwicks. The company said that rising costs influenced its decision.
"Like many businesses in Ireland, we are facing significant inflation in input costs across our operations," it said in a statement. "We have absorbed these costs for as long as possible but unfortunately, we can no longer continue to do so."
The price hike will take effect from 1 February, and the company has written to customers in the on-trade to inform them.
VFI President Paul Moynihan said members are angry about the price increase. Speaking to RTÉ's Drivetime, he said, "It's a huge increase, and the timing just after Christmas, going into a quiet time, but I think what's really shocked our members is the 6.5% increase, that's huge."