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Diageo Price Hike another blow to hard pressed pubs in Ireland
The price of a pint of Guinness is expected to rise by 30c to 40c at the tap after Diageo informed publicans of price increases across its draught beer range from February.
Diageo told its customers in the on-trade that it would increase the price of Guinness and draught beers by 12 cent per pint, excluding VAT, from 1 February, blaming "significant inflation in input costs" across its operations.
The decision comes after Heineken announced before Christmas it would increase the price of its beers by 17 cent per pint, resulting in c.50c being added to the end price of a pint during the peak festive season after VAT, excise and margin costs.
These price hikes come at a time when pubs and bars in Ireland are facing ongoing increases in their energy bills and also hit by the cost of living crisis that is affecting Irish people in general. irishpubs.com believe these price increases are unnecessary at this time when companies like Diageo continue to make large profits and suggest that pub customers should consider switching to Craft Beers from independent Irish breweries. Unfortunately the Irish publicans will have to pass this increase on to its customers and .
The Vintners' Federation of Ireland (VFI) said publicans would likely pass the price increase onto customers, and expressed frustration on behalf of its members at the situation, urging Diageo to reconsider the move.
Paul Clancy, CEO of the VFI. said “We’re heading into the quietest few months of the year for the trade so the increase in the price of a pint couldn’t come at a worse time.
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Longer Opening hours for Irish Pubs
The Irish Government are to extend the opening hours for pubs bars and night clubs in Ireland from January 2023. The changes will allow nightclubs to remain open until 6am, however the sale of alcohol will not be permitted beyond 5am, This new legislation will bring Ireland in line with other European countries, while pubs opening hours will open at10.30 and will be permitted to serve alcohol until 12.30am..
Late bars will also be permitted to operated until 2.30am and early closing hours on Sundays will be scrapped. This is welcome news for the hospitality industry as Irish pubs and night clubs are still recovering from the effects of the Covid19 restrictions and also the ongoing war in Ukraine which has seen a continued increase in energy costs.
Energy crisis as a result of Ukraine war causing serious problems for many Irish pubs
Some Irish pubs could be forced to close for good in the winter due to the spiraling costs of energy and gas, bosses have warned.
Energy supplies across the continent are under severe pressure, with costs spiking as a result and Ireland now facing the prospect of winter power blackouts.
Minister for the Environment Eamon Ryan appeared on Tuesday morning in front of an Oireachtas Committee to discuss energy security, announcing that a new plan to combat energy poverty is set to be published shortly after September’s budget.
One of rhe industries whish are being affected badly by the price hikes is the hospitality industry.
Speaking on Tuesday, VFI Chief Executive Paul Clancy told the Irish Mirror: "There is no doubt pubs across Ireland are facing an extremely challenging autumn and winter period.
The easing Coronavirus COVID-19 restrictions now means that you can again enjoy good food and live entertainment and parties in all pubs and bars in Ireland.
Irish pubs will continue to adhere to all Covid19 guidelines at all times
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