Heineken has told publicans that it plans to increase the price of a pint for its draught products, RTÉ reported this week.
About 6c per pint will be added across the company’s products, due to take effect on 4 June.
The products impacted include Heineken, Heineken 0.0, Coors, Tiger, Birra Moretti, Murphy’s and Orchard Thieves.
However, costs could reach as much as 20-30c extra for customers, once all related expenses are factored in, according to a pub trade source.
‘A Critical Hit’
The news comes after Diageo raised the price of a pint of Guinness – also by 6c – on Monday.
The Vintners’ Federation of Ireland (VFI) described Diageo’s increase as ‘a hammer blow’ to the industry when it was announced in March.
“The announcement by Diageo is not just disappointing, it’s a critical hit to an industry on the brink,” said Pat Crotty, the chief executive of the VFI.
“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 can’t afford.”
‘Impossible To Absorb The Increased Costs’
In a statement, Heineken noted, ‘Due to continued increases in underlying costs we need to adjust our pricing on our draught products.
‘A list price increase of 3% (6c per print) will apply to our draught product range and will come into effect on 4 June 2024.
‘Despite our ongoing efforts to increase productivity and reduce costs, it is impossible for us to absorb all the increased costs that we have been faced with, and therefore we need to adjust our pricing.’
The VFI asked the public to support local publicans and understand the challenges facing the industry.
Crotty added, “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.
“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,” he said.
