Pint price hike a further blow to an industry already on its knees - VFI

Diageo’s decision to increase the price of their draught products has been slammed by a body representing many bars across the country.

The increase of six cent per pint (ex VAT) is effective from February 3.

Vintners' Federation of Ireland (VFI) say this latest price hike will force many publicans to pass on the increase, further impacting already struggling pubs and their loyal customers.

Diageo’s announcement comes against a background of high energy prices, labour costs and input costs. VFI thus describe the price increase as "a blow to an industry already on its knees".

Pat Crotty, VFI CEO, says: “Publicans are being squeezed from every angle—rising energy costs, higher wages and government-imposed charges. This latest price increase from Diageo adds yet another layer of financial pressure on pubs already struggling to keep their doors open.

“Our members understand that costs are rising across the board, but what they need now are meaningful supports to help absorb these increases. 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.”

Pat Crotty continues: “This isn’t just about the price of a pint. It’s about the survival of pubs across Ireland. The reality is that small, community-based pubs are at breaking point. Without additional support, particularly in rural areas, many will simply not survive.

The VFI is calling on the emerging government to introduce targeted reliefs for the pub sector, including: a reduction in excise duty to ease the burden on publicans; a reduction in the top VAT rate from 23% to 21%; a lower VAT rate for pubs serving food; employer PRSI reductions to help mitigate rising labour costs.