- Diageo draught price increase of seven cent per pint from 2 February 2026.
- Drink costs as largest expense for publicans amid rising labour and energy prices.
- Limited capacity to absorb increases without passing to customers.
- Contribution to rural pub closures from repeated supplier rises.
- Call for excise rebate and labour cost supports from government.
The Vintners’ Federation of Ireland has criticised Diageo’s decision to raise the price of its draught products by a further seven cent per pint excluding VAT, effective from 2 February 2026. The federation stated that drink costs represent the single biggest expense for publicans and this increase adds pressure to pubs already facing eroded margins from rising labour costs, high energy prices, and inflation. Many pubs lack capacity to absorb further supplier increases without passing costs to customers. Repeated price rises contribute to rural pub closures amid declining footfall and operating expenses. The VFI called for government supports including an excise rebate scheme for draught beer and cider plus measures to reduce labour costs.
Pat Crotty shared “This latest price increase from Diageo will put even more pressure on pubs that are already operating on extremely tight margins. Many will be left with no option but to pass this on to customers, which helps nobody.” Pat Crotty shared “Our members understand that suppliers also face rising costs, but there comes a point where pubs simply cannot keep carrying these increases alone.”
“This isn’t just about the price of a pint. It’s about the long-term viability of pubs across the country. Community pubs are being pushed to the brink, and continued increases in drink prices only accelerate that trend.”
The increase risks further strain on the hospitality sector where margins remain tight. Pubs serve as community hubs and their survival affects local economies. The federation urged recognition of the sector’s challenges by suppliers and government alike.
