The Vintners' Federation of Ireland (VFI) has criticised Diageo’s decision to increase the price of their draught products by 6% per pint (ex VAT), effective from February 3, 2025.
The federation said this price hike will force many publicans to pass on the increase to consumers, further impacting already struggling pubs and their customers.
“Publicans are being squeezed from every angle—rising energy costs, higher wages and government-imposed charges," said Pat Crotty, VFI CEO. "This latest price increase from Diageo adds yet another layer of financial pressure on pubs already struggling to keep their doors open."
As government formation talks reach a conclusion, the VFI is calling on the government to introduce targeted reliefs for the pub sector, including a reduction in excise duty and a decrease in the top VAT rate from 23% to 21%. The federation also wants a lower VAT rate for pubs serving food and Employer PRSI reductions to help mitigate rising labour costs.
“Our members understand that costs are rising across the board, but what they need now are meaningful supports to help absorb these increases," said Crotty.
"We need suppliers and the government to recognise the unique pressures facing publicans and work with us to find solutions that can sustain this vital sector.”
