With the price of a pint of Guinness likely to rise by about 20c in the coming weeks, Cork publican and Vintners Federation of Ireland (VFI) president Michael O\u2019Donovan has warned that pub closures are \u201cinevitable\u201d.<\/p>\n
His comments come as Diageo announced a price increase of 7c to a pint of Guinness, exclusive of Vat, which will take effect on February 2, citing \u201cindustry-wide cost pressure\u201d.<\/p>\n
The brewer said the price hike was necessary in order for it \u201cto maintain sustainable operations in Ireland\u201d and would involve a 7c increase per pint of Guinness, and 10c of Guinness 0.0.<\/p>\n
It is likely that, when Vat and other factors are taken into account, the price of a pint of Guinness will increase by about 20c.<\/p>\n
It is unclear whether Heineken Ireland, which brews rival stouts Murphy\u2019s and Beamish, will also raise prices. A spokesperson said yesterday it does not comment \u201con commercial terms\u201d.<\/p>\n
Michael O\u2019Donovan, owner of the Castle Inn on Cork\u2019s South Main St, and VFI president, told The Echo he believed pubs would close because of this price rise.<\/p>\n
\u201cI think it\u2019s inevitable, because pubs can\u2019t absorb these price increases and the public are finding it hard with the cost of living,\u201d he said.<\/p>\n
\n \u201cIf your footfall is going down and your costs are going up, it\u2019s inevitable that we will see pub closures because of these price increases.\n <\/p>\n
\u201cTaken on top of the price increase, the minimum wage having gone up on January 1, pension auto-enrolment, and rates increasing in many areas across the country, the price of the pint will go up anything up to 20c.\u201d<\/p>\n
Independent Ireland leader and Cork South West TD Michael Collins said repeated supplier price hikes not only threatened livelihoods, but also had wider social consequences.<\/p>\n
\u201cEvery time the price of a pint goes up, it hits consumers in pocket, and more people make the decision to stay at home rather than meet friends and neighbours in their local pub.<\/p>\n
\u201cThat doesn\u2019t mean less alcohol is being consumed, in many cases it means more, but in isolation rather than in a social setting,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"With the price of a pint of Guinness likely to rise by about 20c in the coming weeks,…\n","protected":false},"author":2,"featured_media":244382,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,4257,79,61,60],"class_list":["post-244381","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-cork-business","tag-cork-news","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/244381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=244381"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/244381\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/244382"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=244381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=244381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=244381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}