Diageo has announced a price increase for its beers, which will take effect early next month.
Publicans now have to pay an additional 12p for a pint of Guinness as a result of this price increase.
As the cost of running a pub continues to rise, it is expected that managers will now have to pass these additional costs on to customers.
The Vintners’ Federation of Ireland (VFI) has urged the alcohol giant to reconsider the move.
VFI Chief Executive Paul Clancy says the price hike comes at an already challenging time for tax collectors at the end of February, due to rising energy costs and the imminent removal of the 9% VAT rate for hospitality.
Diageo’s price hike is followed by Heineken’s price hike in December. Diageo has announced a price increase for its beers, which will take effect early next month.
“This is the second major price increase our members are having to deal with in a few short weeks. Publicans are getting hammered from every angle at the moment and this news from Diageo is a further blow to the trade. Due to the unprecedented cost of doing business publicans will have to pass on this price increase to their customers, which is something they are very unhappy about,” he said, reports Independent.
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