The Vintners’ Federation of Ireland (VFI) has criticised Diageo’s decision to increase the price of their products on draught, including Guinness, by 6c per pint (ex VAT), effective from February 3.
According to the VFI, this price hike, which equates to €5.28/50Lkeg, will force many publicans to raise the sale price of a pint, compounding existing issues facing struggling pubs amid the cost of living crisis.
Diageo, whose brand portfolio includes Guinness, has justified its controversial decision, deeming it "essential" for the continuation of its operations in Ireland.
However, the national trade organisation for pubs outside the greater Dublin area has claimed the announcement comes at a time when publicans are grappling with "unprecedented" business costs, and constitutes a "blow to an industry already on its knees".
VFI CEO, Pat Crotty, said: “Publicans are being squeezed from every angle, rising energy costs, higher wages and government-imposed charges.
"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.”
He argued that the price surge poses an existential threat to rural pubs in particular and has called on the government to interject.
As Dáil formation talks near a conclusion, the VFI is calling on the government to introduce targeted reliefs for the sector, including:
“This isn’t just about the price of a pint. It’s about the survival of pubs across Ireland. The reality is that small, community-based pubs are at breaking point. Without additional support, particularly in rural areas, many will simply not survive.
“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," Crotty explained.