Diageo ups price of Guinness by 3%
The wholesale price of Draught Guinness is to increase by 3% from 1 February 2008.
The relatively modest increase will come as a relief to many because it follows warnings from brewers to expect steep price hikes next year due to rising costs.
Caledonian Brewery boss Stephen Crawley predicts the £4 pint is just around the corner.
The Guinness increase is £8.60 per bulk barrel (36 gallons) on the list price.
I expected worse but any increase at the moment in this economic climate is unwelcomePaul WighamBar Group
A spokeswoman for brand owner Diageo said: "Guinness is currently enjoying its highest-ever share of the on-trade beer market and growing in value at +1% versus the category at -2% (AC Nielsen on-trade MAT to September 2007).
"In line with our annual pricing review we will be increasing the price of Guinness Draught on 1 February 2008 by 3%. The increase is in line with previous years and owing to a number of factors including inflation and cost of goods.
"We continue to work closely with our on-trade customers to drive value within the beer category in the face of challenging conditions."
AC Nielsen consultant Graham Page said the 3% increase is "laudable" as it comes at a time when it is "almost inevitable" that brewers will raise prices above inflation.
Page said: "Diageo has a worldwide wine and spirit business and Guinness is holding quite well so maybe it is not quite as exposed as a company that is solely a brewer."
Bar Group chief executive Paul Wigham said: "I expected worse but any increase at the moment in this economic climate is unwelcome."
Marion Healy, partner at multiple operator Healy Group, said: "We are expecting an increase on all beer products in January and February. It will put more pressure on pub companies such as ourselves, which are already trying to compete against the added expenditure of the smoking ban.
"As for Diageo, I think 3% is a bit over the top as it comes just when Guinness is popular in winter."
