The first of two increases in the cost of Heineken products will be introduced today, Thursday December 01 seeing the rough cost of Heineken products in pubs rise by 50 cents.
The proposed increases for Heineken products have been heavily discussed since the news first broke in early November, with the alcohol giant implementing significant “never seen before” increment of 25 cent per pint excluding VAT.
Martin Morrissey of the Square Inn in Athenry said, “In my 30 years of trade, never have I seen a price increase of that size in the trade. No one saw it coming, it completely blindsided customers.
“We are absolutely up in arms about the increases. It is a knife in the back for traders a month before Christmas. A price increase of any kind is tough but especially after what publicans went through with Covid. We need support from suppliers instead of a knife in the back.”
Following a furious battle with publicans across the country especially in Galway, Kerry and Dublin, about the 17 cents increase per pint at wholesale, during what is projected to be a “winter of discontent”, alcohol giant Heineken finally relented and changed their approach.
After what was then 10 days of discussions with Publicans about the increase, Heineken agreed to stagger the increases over two periods, the first beginning today bringing roughly 10 cent at wholesale per pint excluding VAT, with the second increment to be introduced in March 2023.
“I want to say thank you to the individual publicans who stood up when it was needed, it just goes to show the power of the collective that we got a compromise. Fair play to Heineken also for coming to their senses and recognising the mistake,” said Sheridan adding, “It is still an increase, but a staggered one.”
“We are already heading into a winter of discontent,” said Joe Sheridan, of Walsh’s Pub in Dunmore, “the price increases will see the price of a pint of Heineken rise to 50 cents some pubs.”
From tomorrow, the cost of Heineken, Orchards Thieves, Birra Moretti, Corrs, Fosters, Desperados, Lagunitas, Beamish, Murphy’s will all go up at wholesale, with the actual cost on the pub customers now left up to publicans.
Morrissey says that he is planning to absorb the increase in the Square Inn until the New Year.
“I’m going to absorb the price increase myself and I’m not going to pass on any increases until at least the New Year. My customers have been incredibly loyal to us and I’m not going to pass that onto them.
“I just don’t think it’s fair to put that on my customers, especially coming up to Christmas.”
Morrissey says that he expects consumers to change their preference post increase, sacrificing Heineken beverages for Diageo products, as the consequences of the increase hit home.
“I would expect there to be roughly a 50 cents different between Diageo products, with people opting for Carlsberg and Rockshore over Heineken or Corrs Light. A lot of consumers will switch over the the cheaper products.”
“Diageo have said that they will hold their prices as is until the New Year, they informed us of that a couple of weeks ago and it’s welcome news. That was a big fear in the trade that both Heineken and Diageo would up their prices, but they haven’t and they should be commended for that.”
