A Dublin Pub’s Stand Against Guinness Price Hike
In a bold move against the recent price hike by Diageo, a popular Dublin pub is offering an alternative to its customers. Kavanagh’s Pub on New Street has taken a stand by introducing Beamish stout for €5, in response to the increased prices of Guinness and other Diageo products. This decision comes after Guinness, Harp, Smithwicks, and Hophouse 13 saw a six-cent increase per pint on February 3, excluding VAT. Guinness 0.0 also experienced a nine-cent rise per pint, excluding VAT. When considering VAT, duty, and the pub’s margin, this could potentially result in an additional 30 cents per pint for customers.
This price hike marks the fourth time in the past two years that Diageo has raised prices, citing reasons such as wage inflation and escalating energy costs. Kavanagh’s Pub, known for keeping their Guinness at a flat rate of €5 for cash-paying customers during previous price increases, has decided not to absorb this latest hike. Instead, they have chosen to offer Beamish stout as a more affordable option at €5 for cash transactions. This move is not only a response to the price increase but also a statement encouraging customers to show their dissatisfaction with Diageo’s actions.
Pub’s Response and Social Media Post
Taking to social media to announce the change, Kavanagh’s Pub expressed their frustration with the ongoing price hikes from Diageo. In a post, the pub stated, “The increase came into effect on the 3rd of Feb we will be passing this increase on from this morning as we are now into our new stock.” They went on to highlight the importance of Guinness in bars and the impact of global corporations on local businesses. The post continued, “I’ve more than played my part, I will no longer offer a reduction for cash on the pint of Guinness, instead we will now stock Beamish as an alternative for just €5. (Locked in for 12 months) I would encourage as many of you as possible to try this as an alternative to Guinness as a way of telling Diageo to F@%k off.”
Additionally, the pub announced that they would be removing Guinness 0.0 and Tuborg from their offerings, replacing Tuborg with an alternative value lager option. This strategic decision not only provides customers with a more affordable alternative but also sends a clear message to the beverage giant, Diageo.
Diageo’s Response and Industry Impact
When questioned about the price increase, a spokesperson for Diageo explained, “Like many businesses, we continue to face increased costs across our Irish operations.” The company cited the need to offset these rising costs and maintain a sustainable business in Ireland as the reason behind the price adjustments. The spokesperson clarified that the price increase would affect the entire draught product range, with an equivalent increase of €0.06 per pint of Guinness and €0.09 on Guinness 0.0, effective from February 3.
This move by Diageo reflects broader industry challenges and economic factors impacting businesses across various sectors. As businesses strive to navigate increasing costs and maintain profitability, consumers may continue to see adjustments in pricing and product offerings.
In conclusion, Kavanagh’s Pub’s decision to offer Beamish stout at a discounted rate in response to Diageo’s price hike is a testament to the resilience and adaptability of local businesses in the face of economic challenges. By providing customers with an alternative and voicing their discontent with the price increase, the pub exemplifies the spirit of community support and consumer empowerment in the beverage industry. As the conversation around pricing and consumer choices continues, it remains to be seen how other establishments and consumers will respond to similar challenges in the future.
