The price of draught pints are set to rise again, Diageo has announced. The price hike represents a “blow to publicans and consumers,” Drinks Industry Ireland said on Wednesday. Those in the industry have hit out at the increase, saying that the government needs to act to ensure the survival of Irish pubs.
Guinness, Harp, Smickwicks and Hophouse 13 will all go up by six cents on 3 February, bringing the price of a pint to well over €6, and even beyond €7 in Dublin, with the increase excluding VAT. Guinness 0.0, meanwhile, will increase by nine cents per pint, excluding VAT.
The representative group for the drinks industry in Ireland said the announcement comes at a time when publicans across the country are grappling with “an unprecedented cost of doing business,” saying the increase was “a blow to an industry already on its knees.”
More than 2,000 pubs in Ireland have closed their doors since 2005, according to data from the Drinks Industry Group of Ireland (DIGI). The research found that 2,054 pubs have ceased trading in Ireland in the past 18 years, equal to a reduction of 24% of licensed premises, calling on the sector to call for intervention.
It is the fourth price rise in two years. Industry sources have warned that once VAT, duty and the pub margin are added it will mean 30c extra for a pint “at the tap”.
The Vintners’ Federation of Ireland (VFI) today criticised Diageo’s decision to increase prices again saying it will force many publicans to pass on the increase to consumers, further impacting already struggling pubs and their loyal customers.
Pat Crotty, VFI CEO said: “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.
He continued: “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,” he says.
The VFI boss said that it is not just about the price of a pint, but the issue is 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.
“We know that Diageo and other suppliers value the role pubs play in Irish life, so it’s time to step up with concrete support measures. At the same time, we need government intervention to address the ongoing cost-of-living crisis and the soaring costs faced by businesses,” he added.
The Vintners’ Federation of Ireland is calling on the government to introduce targeted reliefs for the pub sector, including a reduction in excise duty, a reduction in the top VAT rate from 23% to 21%, a lower VAT rate for pubs serving food and employer PRSI reductions to help mitigate rising labour costs.
According to Crotty: “Our message is clear: publicans cannot keep absorbing these hits alone. The government and suppliers need to act now to ensure the survival of this vital part of Irish culture.”
Changing Times Brewery, a new brewery backed by a number of well known publican families in Dublin, said they will not be increasing their prices in 2025.
“We might be known as Changing Times, but one thing that won’t be changing this year is our prices, unlike some others in the market,” said Ronan Lynch of the Swan, one of Changing Times Brewery’s founding publicans.
“We thought it was important to make that clear, so that our customers know they will be paying the same prices today and tomorrow as they did when we launched last November. Being a locally produced, Irish brewery we know how disappointing people find regular price increases from some of the major operators. So at the start of 2025, we wanted to give this firm commitment to anyone trying our refreshing beers.”
114 pubs on average have closed across Ireland every year of the last 18, with this figure rising to 144 annually between 2019 and 2023. According to a study from DIGI, every one of Ireland’s 26 counties has seen a decrease in the number of open pubs over the last two years, with rural areas experiencing the highest rates of closure.
Limerick has been identified as the county which saw the steepest decline, with the number of public houses dropping by 35.6 per cent since 2005. Meanwhile, Roscommon now has 31.9 per cent fewer pubs, while Roscommon saw a drop of 31.9 per cent.