WITH St. Patrick’s Day just around the corner, Guinness lovers are being warned that prices could soar 10% in the coming months.
This warning comes amid concerns about potential US tariffs on European goods, and follows Diageo’s announcement of a 4.2% increase in wholesale prices, effective from 1 May.
Should prices climb by a further 10%, the average cost of a pint could approach £5 nationwide and reach approximately £6.22 in London[/caption]
While Diageo doesn’t set retail prices, the cost of a pint has already seen an 8% increase over the past year, with the average price currently at £4.48.
London continues to hold the title of the priciest spot to enjoy a Guinness, with the average pint costing £5.66.
Should prices climb by a further 10%, the average cost of a pint could approach £5 nationwide and reach approximately £6.22 in London.
The warning follows comments from Diageo’s finance chief, Nik Jhangiani, who stated that the company expects its profits could fall by around $200 million if the US imposes tariffs on Mexico and Canada in March.
John J. Hardy, global head of macro strategy at investment platform Saxo, suggested that Diageo’s warning serves as a form of “insurance policy” while the company waits to gauge the potential impact of Trump’s tariffs.
He said: “A 10% increase is a reasonable baseline estimate for tariffs on European imports, but [but] just like us, Diageo has no idea where the Trump administration will end with these tariffs.
“Diageo’s move to warn of a potential loss on tariff impacts is like the prudent purchase of an insurance policy as they try to assess the potential downside risks to their future results in a ‘base case’ scenario of tariffs being implemented.
“This allows them to justify the risk of weak performance beforehand and to claim some positive news upside should the tariff impact prove far smaller.”
Guinness has seen a surge in popularity in recent years and in January there were reports it could be sold off for as much as £8billion as Diageo eyes cashing in.
Those looking to enjoy a bargain pint this St Patrick’s Day can head to Wetherspoons, which announced earlier this week that it will be reducing prices on March 17.
The price of a pint of Guinness is set to drop from £3.60 to £3.15 in over 670 pubs.
As St Patrick’s Day aligns with the pubs’ Monday Club promotion, a variety of other drink prices will also be reduced on Monday, March 17.
Highlights include a pint of Ruddles or Worthington’s for just £1.49, a pint of Carling for £2.49, and a single measure of selected spirits (including a mixer) for £1.99.
Additionally, two cocktail pitchers can be enjoyed for £14.25, while a pint of Strongbow or Abbot Ale will cost £2.39 each.
How to save money buying alcohol
Alcohol can be pricey if you’re planning a party or hosting an event but there are ways to cut costs.
It’s always important to drink responsibly, here, Sun Savers Editor Lana Clements share some tips on getting booze for the best price.
Stocking up can mean big savings on drinks, especially if you want to buy wine or fizz.
The big supermarkets regularly offer discounts of 25% when you buy six or more bottles of wine. The promotions typically run in the lead up to occasions such as Bank Holidays, Christmas and Easter.
If you know you are going to need booze later in the year, it can be worth acting when you see offers.
Before buying your preferred drink make sure you shop around to find the best price – you can use a comparison site such as pricerunner.com or trolley.co.uk.
Don’t forget that loyalty cards can unlock better savings so make sure you factor that in too.
If you like your plonk, wine clubs can also be a good way to save money and try new varieties. You’ll usually have to pay a membership fee in return for cheaper price so work out if you will be buying enough to make the one off cost worthwhile.
TOUGH TIME FOR PUBS
The pub industry is facing mounting pressures, including soaring energy bills, rising costs, and squeezed household budgets.
In April they will also be hit by upcoming hikes in employer National Insurance Contributions and the National Living Wage.
Several operators have warned punters to expect price increases as a result including All Bar One owner Mitchells & Butlers and Fuller’s.
As costs increase the British Beer and Pub Association has warned that more pub closures could also be on the horizon.
The trade body estimates that the cumulative impact of the Autumn Budget will create an extra £650million in costs for the sector.
Many pubs are also bracing for a planned reduction in the business rates discount for hospitality, leisure, and retail firms, which will drop from 75% to 40%.
Camra’s Corbett-Collins has also renewed calls for business rates reform alongside changes to help publicans stock more beers from independent brewers to support the industry.
Last month research revealed the most expensive beer brands and the areas where a visit to the pub will hit your wallet the hardest.
Brewers have also been impacted by escalating costs with many cutting product lines or reducing the strength of much-loved brews.
Punters were left fuming earlier when Carlsberg Marston’s Brewing Company (CMBC) announced it was ditching 11 classic cask beers.
The Campaign for Real Ale (CAMRA) slammed the decision as “another example of a globally owned business wiping out UK brewing heritage”.
A number of major beer brands have slashed the strength of their lagers in a budget-boosting move too.
Hophead has reduced its ABV from 3.8% to 3.4% with landlords still being charged the same wholesale price.
Bottles of Banks’s Amber Ale were also changed from 3.8% to 3.4% in the middle of last year.
Meanwhile, Carlsberg Danish Pilsner, Grolsch Premium Pilsner and Banks’ Amber Ale have been reduced to 3.4%.
The move from a number of beer brands come after drinks started being taxed by alcoholic strength.
The change since August means that drinks are now taxed according to strength rather than type.
