Publicans “at breaking point” as price of pint set to rise again!

The Vintners’ Federation of Ireland (VFI) has warned of a spate of pub closures across the country in the wake of Diageo’s decision to increase the price of its draught products by a further 7% (ex VAT) from early next month.

Diageo is the owner of Guinness, along with a number of other well-known drinks brands such as Smithwicks and Rockshore.

The Vintners body says drink costs are the “single biggest cost” facing all publicans, who may be left with “no option” but to pass the latest price increase on to their customers. Pat Crotty, CEO of the Vinter's Federation, Pat Crotty, claims that while pubs are “being hit from all sides” and the new price rises come at a time when margins are “already being eroded” by rising labour costs, high energy prices and ongoing inflation across all areas of the business.

“If suppliers value the role pubs play in Irish life, now is the time to show it through meaningful support. Without action, more pubs will close and once they’re gone, they’re gone for good” said Mr. Crotty.

While the VFI understands that” suppliers also face rising costs” the representative body says there comes a point where pubs “simply cannot keep carrying these increases alone.”

The VFI warned that repeated supplier price increases are contributing to rural pub closures, where pubs are already under severe pressure from declining footfall and rising operating costs.

“This isn’t just about the price of a pint,” says the VFI CEO, “It’s about the long-term viability of pubs across the country. Community pubs are being pushed to the brink, and continued increases in drink prices only accelerate that trend.”

The VFI is once again calling on both suppliers and Government to recognise the scale of the challenge facing the sector. In particular, the Federation is urging Government to introduce targeted supports to help pubs remain viable, including:

a) an excise rebate scheme for draught beer and cider sold in pubs

b) measures to ease rising labour costs, including employer PRSI supports