E-Malt.com News article: Ireland: Diageo to increase the price of Guinness by 10 cent a pint on September 15

Diageo confirmed that it is planning to increase the price of Guinness by 2pc or 10c since September 15, which will most likely be passed onto the consumer, the Irish Herald posted on September, 3.

These increases come shortly after the protests by farmers last month, who demanded higher prices for barley.

Malting barley prices on offer to tillage farmers are at €165 per tonne, down from €205 last year.

Meanwhile, sales of the iconic stout grew 2.3 pc in its home market in the 12 months to the end of June.

Fine Gael's John O'Mahony criticised the hike in prices. "Farmers have had the price they receive for their barley slashed, but it is clear that any saving generated from this is not going to be passed on to the customer.

"Guinness sales grew last year, but its parent company, Diageo, obviously does not intend to reward its loyal customers or the growers who supply the barley," he said.

But a Guinness spokeswoman defended the price increase saying: "Basically it's been driven by the significant price increases we've seen recently -- in fuel, in aluminium for cans, glass for bottles.''

She continued: "Our price increase isn't on the retail price -- we don't set that. The price of a pint is basically split into three -- about 35pc goes to the Government, 35pc to the publican and 30pc to the brewer."

But Mr O'Mahony said some of his drinking friends, who were barley farmers, were furious with Guinness.

He added: "The farmers are getting less for their barley and then when they get a pint they are having to pay more."


04 September, 2008