Ireland: The price of a pint of Guinness is to rise by around 10 cent from next month

Diageo announced that it will increase its prices by 4 cent to pub owners in Ireland. This would lead to a price rise of around 10 cent on a pint of Guinness with VAT. Traditionally, when the breweries put up their prices, the retailers follow. A Diageo spokeswoman said last night the increase is being put on to recover costs that have increased in the last 12 months.

"We will continue to invest in our products," she said.

The increase will come into effect on June 1st and will cover all Diageo's beer products, including Guinness, Smithwick's, Carlsberg, Harp and Budweiser.

Last night, a consumer group condemned the proposed increase and called on publicans not to make their own addition to the rise.

"This is very short-sighted of Diageo and it would be a disastrous step for publicans to take the usual step to add to that increase," said Dermott Jewell of the Consumers' Association of Ireland. "It will not benefit them. The only thing it will do is drive more people away from pubs," he added.

News of Diageo's latest price increase comes just a day after the announcement of the establishment of the National Consumer Agency, which has enhanced powers to fight against unjustified price rises.

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