Business

Heineken price hike could add 15 to 20 cent to cost of a pint

While the brewer is adding 6 cent to its price, sources indicate this could rise to as high as 20 cent at the taps due to margins such as VAT

Heineken is the latest brewer to announce a price hike. Photograph: Dara Mac Donaill

Eoin Burke-Kennedy
Thu Apr 18 2024 - 14:44

Heineken Ireland has said the price of its draught products, including both its standard and alcohol-free Heineken, will rise by 6 cent per pint from early June.

Pub industry sources said the move would add 15-20 cent to the price of a pint for consumers.

“There are no hard and fast rules about pricing but in general to maintain margins including VAT, a 6 cent price rise [at the brewers’ end] tends to convert into a 15-20 cent price hike for consumers,” the industry source said.

Heineken said the price increase would apply to the group’s other brands which include Coors, Birra Moretti, Murphys, Foster’s, Beamish, Tiger, Lagunitas IPA and Cute Hoor.

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It blamed the increase on rising costs.

“Due to continued increases in underlying costs we need to adjust our pricing on our draught products,” a Heineken Ireland spokesperson said.

“A list price increase of 3 per cent (6 cent per pint) will apply to our draught product range and will come into effect on the June 4th, 2024.

“Despite our ongoing efforts to increase productivity and reduce costs, it is impossible for us to absorb all of the increased costs that we have been faced with, and therefore we need to adjust our pricing.”

Heineken’s announcement comes in the wake of a similar move by Diageo, which last month announced a 6 cent increase in the price of a pint of Guinness, Carlsberg and Smithwick. The price of Guinness 0.0 was raised by 9 cent.

According to the Central Statistics Office, the average price of a pint of stout in licensed premises last November was €5.64, up 48 cent in the year, while lager cost €6.07, up 50 cent year on year, but prices vary depending on the establishment.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times

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