Publicans say Guinness price hikes are contributing to rural pub closures

Publicans have criticised a hike in the cost of Guinness, and other draught beers produced by Diageo, saying price rises are contributing to rural pub closures.

The price of a pint of Guinness will rise by 7c and Guinness 0.0 by 10c from February 2.

In a statement The Vintners’ Federation of Ireland (VFI) warned “the move will pile yet more pressure on pubs already struggling to survive”.

The organisation said: “Drink costs are the single biggest cost facing all publicans and this latest increase comes at a time when margins are already being eroded by rising labour costs, high energy prices and ongoing inflation across all areas of the business.

“For many pubs, there is simply no capacity left to absorb further supplier increases”.

The VFI said repeated supplier price increases are contributing to rural pub closures, along with declining footfall and rising operating costs.

Diageo, the multinational company which produces Guinness, Hop House 13, Kilkenny and Tusker said: “Industry-wide cost pressures remain elevated for businesses and in order for Diageo to maintain sustainable operations in Ireland, we have advised our on-trade customers that there will be an increase to the list prices on our full draught product range.”

Pat Crotty, VFI chief executive, said: “Our members understand that suppliers also face rising costs, but there comes a point where pubs simply cannot keep carrying these increases alone.

“This isn’t just about the price of a pint, it’s about the long-term viability of pubs across the country.

“Community pubs are being pushed to the brink, and continued increases in drink prices only accelerate that trend.”