Prices go up as pints go down in Limerick
LIMERICK publicans are outraged and ‘unsure of the future’ after Diageo, a beverage supplier for the majority of Irish publicans, announced an increase in prices.
The company has advised all publicans across the country that the price of a pint will increase by four cents from August (five cents including VAT).
“The price increase is poorly-timed and deeply unfair to both consumers and publicans,” says the Vintners’ Federation of Ireland (VFI).
VFI representative Paul Flannery, manager of Flannery’s on Shannon Street in the city, said: “It is disappointing because of what is going on with the cost of living and inflation. It is the second price increase in the last couple of months and it will be interesting to see what it is going to do to businesses over the next couple of months as it could be the demise for some.”
Paul continued: “We hope people will continue to come into pubs but it is going to make people pick and choose their days to go out. It will impact rural areas as people have to pay to get to and from the pubs and the transport links will not be there which means rural pubs will be impacted more unfortunately.”
In the correspondence, Diageo cited ‘rising business costs’ as the reason for imposing this increase.
Reacting to the announcement, John Clendennen, VFI President said: “This is incomprehensible both in the need for such an increase and the timing of it. Diageo took a twelve cent increase back in February which, in my memory, is the highest ever increase imposed. Many of the factors under ‘rising business costs’ Diageo refer to as justification for the increase were either known back in February and included in that increase or, indeed, have reduced in the meantime.”
The VFI has accused Diageo as being “out of tune” with both their customers and the consumer.
“I will be calling on Diageo to review this decision immediately,” said Mr Clendennen.