Ireland: Diageo to increase draught beer prices for the second time this year

Guinness owner Diageo is to increase the price it charges for draught beer for the second time this year, RTE reported on July 19.

The cost of a pint is to rise by 4 cent from 14 August.

The move will apply across the company's portfolio of draught brands, including Guinness, Carlsberg, Smithwicks, Harp, Rockshore and Hop House 13.

Diageo blamed the decision on rising costs.

"We continue to experience rising input costs across our business operations in Ireland," a spokesperson said.

"We are working to manage and absorb much of this, but to maintain a sustainable business, we have written to our customers in the on-trade to advise them of an increase on draught beer list prices of 4 cent per pint."

The last time it increased prices was 1 February, when it added 12 cent to the cost of a pint.

The cumulative total of 16 cent a pint increase by Diageo compares to a 17 cent hike in prices over the past year by rival Heineken.

The Vintners' Federation of Ireland described the price increase as poorly timed and deeply unfair to both consumers and publicans.

"This is incomprehensible both in the need for such an increase and the timing of it," said John Clendennen, VFI President and owner of Giltraps Bar and Glamping in Kinnity, Co Offaly.

"Diageo took a 12-cent increase back in February which, in my memory, is the highest ever increase imposed."

"Many of the factors under 'rising business costs’ Diageo refer to as justification for the increase were either known back in February and included in that increase or, indeed, have reduced in the meantime."

He added that the timing is awful, coming in the middle of the tourist season.

"I can’t think of a more inopportune time for a supplier to even be thinking of increasing prices, let alone doing it," he added.

"I believe Diageo are out of tune with both their customers and the consumer. I will be calling on Diageo to review this decision immediately."

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