The Vintners’ Federation of Ireland (VFI) has criticised Diageo’s decision to increase the price of their draught products by six cent per pint (ex VAT), effective from 3rd February 2025. This price hike will force many publicans to pass on the increase to consumers, further impacting already struggling pubs and their loyal customers.

Diageo’s announcement comes at a time when publicans are grappling with an unprecedented cost of doing business. Energy prices remain high, labour costs have surged and input costs have soared across the board. This price increase is 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.

“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.”

As Government formation talks reach a conclusion, the VFI is calling on the 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.

Pat Crotty concludes: “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.”