In a letter to publicans this week, Diageo has announced plans to increase the price of a pint of Guinness by 6c on April 15.
The increase will also apply to its beer brands such as Hop House 13, Carlsberg and Rockshore.
The move has been described as 'a hammer blow' by the Vintners Federation of Ireland (VFI).
'On The Brink'
“The announcement by Diageo is not just disappointing, it's a critical hit to an industry on the brink," said Pat Crotty, VFI CEO.
"Publicans have been navigating a storm of rising costs, including the increase in minimum wage, additional mandatory sick days and the impending pension auto-enrolment scheme.
"This latest price hike is a blow they cannot afford."
'Deep Concern'
The increase comes after a previous 12c increase in February 2023, which VFI says compounds the financial pressures faced by publicans across Ireland.
The VFI has expressed 'deep concern' over the timing and magnitude of the increase, highlighting the impact it will have on the already struggling pub trade.
The federation warned that the cumulative effect of these financial pressures threatens the viability of the trade.
'Soaring Charges'
"We know our customers are in the middle of their own cost of living crisis so the last thing our members want to do is increase prices," said Crotty.
"Unfortunately most publicans will have to pass on this increase as it’s all but impossible to absorb given the rise in labour costs and other soaring charges."
Challenges
The VFI has appealed to the public to understand the challenges facing their local pubs and to support them.
“At the very least we are calling in Diageo to commit to no further increases in the price of a pint for the remainder of 2024,” said Crotty.
