Mayo pubs potentially at risk from Diageo's upcoming price hike
The Vintners’ Federation of Ireland (VFI) has strongly criticised Diageo’s decision to increase the price of its draught products by a further 7 cents per pint (ex VAT), effective from February 2, warning that the move will pile yet more pressure on pubs in Mayo and throughout Ireland that are already struggling to survive.
A Diageo spokesperson said industry-wide cost pressures remain elevated for businesses, and to maintain sustainable operations in Ireland, they have advised on-trade customers that there will be an increase to the list prices on its full draught product range. This includes an increase equivalent of 7 cents per pint of Guinness, and 10 cents per pint of Guinness 0.0 from February 2.
Pat Crotty, CEO of the VFI, stated: “Publicans are being hit from all sides, but drink costs are the biggest burden they face. This latest price increase from Diageo will put even more pressure on pubs that are already operating on extremely tight margins. Many will be left with no option but to pass this on to customers, which helps nobody.”
He continued: “Our members understand that suppliers also face rising costs, but there comes a point where pubs simply cannot keep carrying these increases alone.
“Pubs are at the heart of local communities and suppliers depend on them for their route to market. We expect suppliers, including Diageo, to recognise that reality and to support VFI members rather than repeatedly adding to their cost base.”
The VFI warned that repeated supplier price increases are contributing to rural pub closures, where pubs are already under severe pressure from declining footfall and rising operating costs.
“This isn’t just about the price of a pint,” said the VFI CEO. “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.”
The VFI is calling on both suppliers and government to recognise the scale of the challenge facing the sector. In particular, the federation is urging government to introduce targeted supports to help pubs remain viable, including an excise rebate scheme for draught beer and cider sold in pubs, and measures to ease rising labour costs, including employer PRSI supports.
Mr. Crotty concluded: “Publicans cannot continue to absorb these hits year after year. If suppliers value the role pubs play in Irish life, now is the time to show it through meaningful support. Without action, more pubs will close – and once they’re gone, they’re gone for good.”