Pub-goers across the UK are set to pay more for a pint of the iconic black stout, as the drinks giant Diageo has confirmed a significant price increase for Guinness. The wholesale cost of Guinness Draught will rise by 5.2 per cent from April 1, adding approximately 4p to the price per pint before it reaches the consumer.
Diageo Points to Supply Chain Pressures
The company, which also produces Smirnoff Vodka and Baileys Irish Cream, stated the decision was driven by the "rising cost of doing business". A Diageo spokesperson explained that they had tried to minimise the impact, saying: "We have kept today’s cost price increase to a minimum, reflecting the rising costs in our supply chain."
This announcement delivers another blow to the already struggling hospitality sector. Publicans, who are grappling with soaring energy bills and ingredient costs, now face the difficult choice of absorbing the increase or passing it on to customers who are themselves feeling the pinch from the cost-of-living crisis.
Brewery Group on the Brink of Collapse
The news coincides with fresh turmoil for the UK's brewing industry. The Keystone Brewery Group, parent company to well-known brands like Black Sheep, Hofmeister, and Fourpure, is on the verge of administration.
The group, which employs around 190 staff nationwide, is reportedly struggling with a combination of rising operational costs and a sharp decline in demand for its pub staples. This is the second major crisis for the business in recent years; it previously entered administration in 2023 before being rescued by the investment firm Breal Group.
Keystone, led by Steve Cox with a target of reaching £100m in annual sales by 2028, has filed a notice of intention to appoint FRP Advisory as administrators. This step is understood to have been taken under pressure from several of the company's trade creditors.
Business Rates Changes Add to Hospitality Woes
Further compounding the challenges for pubs and independent businesses are upcoming changes to the business rates system. Despite the Labour Chancellor's recent Budget promise of the "lowest rates since 1991", a recalculation of rateable values and the replacement of temporary relief with a less generous scheme will result in higher bills for thousands of venues.
Allen Simpson, chief executive of UKHospitality, warned of the widespread impact: "Business rates tax hikes will hit every city, town, village and high street in the country." This perfect storm of rising wholesale prices, fragile consumer demand, and increased property taxes threatens the viability of many local pubs, placing the future of the classic British pint under renewed pressure.
