Publicans unimpressed by Guinness price pledge
Plans to freeze the price of a pint of Guinness are merely a stay of execution for Irish publicans, it was claimed today.
Pub owners said the move would do little to reverse the decline in business caused by higher taxes and the smoking ban.
Con Dennehy, council member of the Vintners Federation of Ireland, said he was extremely sceptical about delaying increases until June 2005.
“Diageo are freezing the price now but they’ve already imposed a price increase this year. So what?”
Diageo will freeze any price increases until June next year, rather than its traditional date in March. It increased draught beer prices by four cent in 2002, four cent in 2003 and six cent in June this year.
The price of a pint of Guinness has risen to around €3.50 outside of Dublin and €4.20 in the capital.
Mr Dennehy said: “The prices being charged in Dublin are giving the rest of us a bad name. I accept that costs are higher but you’d want a second mortgage to buy a round of drinks there.”
The Consumers Association of Ireland welcomed the price freeze but said a reduction was needed instead.
Chief executive Dermott Jewell said Diageo was trying to calm the waters after some publicans stopped stocking its draught beers – Guinness, Carlsberg, Budweiser, Harp and Smithwicks – in protest at high prices.
“This is more a move to retain custom than to improve the market for consumers,” he said.
However, Diageo said its dispute with certain publicans had been settled and that it was a separate issue.
Spokeswoman Jean Doyle said: “We hope the price freeze will bring stability to the business of publicans as well as ours.”
She added that Diageo would consider any increases in June next year in the light of the cost issues and market conditions at that time.
