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Ireland: Guinness to raise prices in February in a new blow to struggling publicans
Guinness will raise prices of Irelands favorite brew next month by 12 euro cents per pint, a new blow to struggling publicans and prompting calls for the company to reconsider its decision, Bloomberg reported on January 10.
London-based parent company Diageo Plc, which reported profit of 3.34 billion ($4.1 billion) in its latest fiscal year, said it could no longer afford to absorb rising costs, which are increasing for brewers worldwide.
Pubs are already grappling with a soaring cost of energy and still recovering from the impact of the Covid-19 pandemic on their businesses. The move also follows a similar 17 euro-cent increase announced by Heineken NV on its products in December.
Vintners Federation of Ireland Chief Executive Paul Clancy said publicans were getting hammered from every angle and described Diageos move as a further difficulty for his members.
Were heading into the quietest few months of the year for the trade, so the increase in the price of a pint couldnt come at a worse time. Due to the unprecedented cost of doing business publicans will have to pass on this price increase to their customers, which is something they are very unhappy about, he said.
Speaking to reporters in Dublin, Irish Prime Minister Leo Varadkar said he didnt think a 12 cent increase would would put any pubs out of business, but added that it would cause financial hardship for many in light of the rising cost of living.
He added that the Irish governments energy support scheme was there to help businesses cope with rising costs, but added that he had been surprised by the low take-up by firms to date.
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