Diageo confirms price of pint of Guinness will be increased from next month

Diageo has confirmed that it will be increasing the price of a pint of Guinness in February.

From next month, a pint of Guinness will now cost you an extra seven cents while the price of a Guinness 0.0 will cost you an extra 10 cent.

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The Vintner' Federation of Ireland (VFI) has heavily criticised the move from the drinks giant saying it will put even more pressure on pubs across Ireland who are already struggling to stay in business.

It's estimated that the new increase would translate to a 20 cent rise in prices "at the pump" once VAT is included.

In a statement, Diageo said,

"Industry-wide cost pressures remain elevated for businesses, and in order for Diageo to maintain sustainable operations in Ireland, we have advised our on-trade customers that there will be an increase to the list prices on our full draught product range."

The VFI have said there is "simply no capacity left to absorb further supplier increases" in pubs across the country.

"The latest price increase from Diageo will put even more pressure on pubs that are already operating on extremely tight margins," said CEO of the VFI Pat Crotty, "Many will be left with no option but to pass this on to customers, which helps nobody.

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"Our members understand that suppliers also face rising costs, but there comes a point where pubs simply cannot keep carrying these increases alone," he added.

"Pubs are at the heart of local communities and suppliers depend on them for their route to the market. We expect suppliers, including Diageo, to recognise that reality and to support VFI members rather than repeatedly adding to their cost base."

The VFI has warned that the repeated increased are significantly contributing to rural pub closures who are already struggling as a result of declining footfall and rising operating costs.