Prices across the board are going up, and why would we assume that Diageo and Guinness would be immune to that? Let’s be honest as well, they’ve never been shy about passing on those costs in the past, so it’s hardly a great surprise to see an increase at the same time every other business is whacking things up.
Now, granted, in true Diageo style, it’s a few percentage points higher than most of the other brewers – and that follows on from studies that show the price of a pint of Guinness in March 24 had increased by 8%.
I mean, it’s not unreasonable for a company to increase its prices as global head winds gather pace, and the chaos of Trump’s economic see-sawing bite into the world’s markets. After all, it’s not like they’ve imposed ridiculous and unexplained restrictions on glassware, product, or have abysmal standards of customer service, with many operators branding them arrogant… Plus, they’re going to supplying free glassware as well, probably even 24 of them.
Oh, hang on….
Ok, scratch all that!
Ultimately, we all know price rises are inevitable, but it’s the smash and grab approach of Diageo which causes the most upset. If they were knocking it out of the park in all other areas you could maybe accept such an above inflation increase. Maybe. But they’re not. They’ve been woeful for many, many operators. From the refusal to help out with branded glassware to the inability to fulfil orders and supply enough product at trade critical junctures (Christmas anyone?).
Ultimately though, when all is said and done – it’s their product to kill off and operators that still want to stock Guinness should be passing on the increases to the customers with the explanation that it’s out of their hands.
Guinness drinkers are said to be supremely loyal, and that was certainly true once upon a time, but this new consumer, the one driving these “unexpected” spikes in demand and disrupting supply – you know, the one’s splitting the G – will they remain quite so loyal if they can find other similar products at cheaper prices?
That remains to be seen, but if I was Diageo, I’d be wary of being the company that kills the goose that laid the golden egg.