Ireland: Diageo increases Guinness prices in Ireland

Guinness owner Diageo has increased draught beer prices in Ireland for the fourth time in two years with the cost of a pint of the black stuff predicted to rise by 6% from February, The Drinks Business reported on January 16.

Diageo has informed publicans that the price of Guinness, Harp, Smithwicks, Hophouse 13 and Harp will rise by 6% per pint before VAT from 3 February.

Industry sources have warned that once VAT, duty and pub margins are added, an extra 30% could be added to the price of a pint at the tap, as already struggling pubs will be forced to pass the increases on to consumers.

The hike is expected to raise the price of a pint to over €6 across the country, and tip the Dublin pint price above €7.

The Vintners’ Federation of Ireland (VFI), a trade organisation representing pubs outside the greater Dublin area, has said the decision will have a grave impact on Irish pubs.

“This isn’t just about the price of a pint. It’s about the survival of pubs across Ireland,” said Pat Crotty, VFI CEO.

Crotty warned that small, community-based pubs “are at breaking point” as a result of ongoing economic pressures.

He explained: “Publicans are being squeezed from every angle—rising energy costs, higher wages and government-imposed charges.”

As such, the latest price hike by Diageo “adds yet another layer of financial pressure on pubs already struggling to keep their doors open”.

Diageo’s announcement of rising prices in Ireland is the fourth from the multinational in two years, according to Drinks Industry Ireland.

Crotty warned that as the squeeze on pubs continues, additional support, “particularly in rural areas” is needed from both suppliers and the government.

He said: “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.”

In the UK, Guinness was famously hard to get hold of over the Christmas period due to stock shortages converging with rising popularity.

Diageo even raided security stocks in Ireland to boost shipments to the UK. The reserves are usually earmarked for Irish consumers, but were instead used to ease pressure on UK pubs.

The shortage opened the door for other stout brewers to find success. Sales of Murphy’s Irish Stout shot up by 632% in UK bars and pubs during the Christmas 2024 period, as drinkers looked for an alternative to Guinness. Read more here.

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