Drinkers across England have been issued a stark warning that the price of a pint of Guinness could soon reach the landmark £10 figure. This follows an announcement from brewer Diageo that it will increase wholesale prices from the start of April.
Diageo Implements Latest Price Increase
This week, Diageo confirmed it would become the latest major brewer to impose price hikes on publicans. From April 1, the cost of a pint of Guinness will rise by 4p, representing a 5.2% increase. This move has ignited fears that the iconic stout will become the first beer to commonly sell for a tenner in pubs.
Mark Edgell, the landlord of the Dog and Partridge pub in Yateley, Hampshire, voiced the frustration felt by many in the hospitality sector. He accused Diageo of being "hell bent on having the first £10 a pint beer".
Pubs Face a 'Slap in the Face' from Multiple Costs
In an interview with the Morning Advertiser, Edgell explained that pubs are being squeezed from all directions, forcing them to pass on unsustainable price increases to customers. He listed a perfect storm of financial pressures beyond the latest Diageo hike.
These include soaring energy bills, recent rises in the national minimum and living wage, increased National Insurance contributions, beer duty increases, high VAT rates, and recent business rates revaluations.
"This price hike from Diageo is just another slap in the face," Edgell stated, highlighting the precarious position many publicans find themselves in.
New London Brewery Opens Amid Price Controversy
The price increase news comes just weeks after Guinness celebrated the opening of a significant new venture. The brand has launched a £73 million brewery and visitor experience in London's Covent Garden, marking a major investment in the UK market.
However, the site will not produce the famous draught stout. Guinness confirmed that the original "black stuff" will continue to be brewed exclusively in Dublin. The London brewery will focus on producing four permanent beers for the local market.
Barry O’Sullivan, Diageo's Managing Director for Great Britain, expressed optimism about growth, particularly through sports partnerships like the Premier League. "Now we are only just getting started on that journey with the Premier League and it opens us up to a sport which takes place for the best part of 40 weeks," he told the Press Association.
Grainne Wafer, Global Director for Beer, Liqueur and Vodka, noted that the new London venue took over six years to develop. She explained that Great Britain is Guinness's biggest global market, making the capital a natural choice for the investment, especially given the high number of UK visitors to the Dublin Storehouse.
The juxtaposition of a multi-million pound investment with a price hike that threatens to push a pint to £10 underscores the complex challenges facing both the brewing industry and the traditional British pub.
