Diageo has written to all publicans in Ireland advising that the price of a pint will increase by four cents (five cents when VAT is included) from August, according to Vintners' Federation of Ireland (VFI).
VFI Reaction
Reacting to the news, the VFI said that the price increase is poorly timed and deeply unfair to both consumers and publicans.
According to the VFI, in the correspondence, Diageo cited "rising business costs" as the reason for imposing this increase.
Statement By VFI President
Reacting to this announcement, John Clendennen, VFI president and owner of Giltraps Bar and Glamping in Kinnity, Co Offaly, said, "This is incomprehensible both in the need for such an increase and the timing of it. Diageo took a 12-cent increase back in February which, in my memory, is the highest ever increase imposed. Many of the factors under 'rising business costs' Diageo refer to as justification for the increase were either known back in February and included in that increase or, indeed, have reduced in the meantime."
Clendennen continued, "The timing is awful. We are in the middle of peak tourist season, businesses in tourist areas that need good summers to see them through the quiet winter period are suffering from the loss of accommodation beds, while the consumer is reeling from increased mortgage and other cost of living increases. I can't think of a more inopportune time for a supplier to even be thinking of increasing prices, let alone doing it.
Clendennen concluded, "I believe Diageo are out of tune with both their customers and the consumer. I will be calling on Diageo to review this decision immediately."
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