heineken increase

asdfg22

I just wonder what the view is here on this. Heineken has gon up around 50 cent around here since before Covid. I heard a rep for publicans saying that it will go up another 40 cent with this increase.

Will the locals be priced out? it may be publicans will price themselves out of business.

I read that the pint has gone up average of 47 cent since before Covid.

Has pints of Heineken gone up around the country or is it just the local pubs aroud here. Just asking?

Allinall

A lot of pubs in Dublin have dropped all Heineken products as a result of the increase.

It may backfire spectacularly on them.

asdfg22

https://www.boards.ie/discussion/comment/119910736#Comment_119910736

It may be that Heineken will go out of business?

afatbollix

They are worth €51 billion. The tiny market in Ireland isn't going to put them out of business.

Henry Ford III

Strikes me that the options are:-

1/. Pay the increased price.

2/. Don't.

MrMusician18

Bit mad that when Heineken increase the price by 17c a pint, the resultant increase in a pub is 50c.

Does a more expensive pint cost more to serve??

Xterminator

https://www.boards.ie/discussion/comment/119910868#Comment_119910868

its not the only expense thats going up. its a cumulative effect when many of your overheads go up.

"In the second quarter of 2022, they expect energy costs will go up by +25.8%, transport cost by +23.3%, operational costs (for things such as broadband, phones, insurance etc) by +14.0 % and staff costs by +9.0%"

https://www.thinkbusiness.ie/articles/irish-business-owners-rising-costs-enterprise-nation/

techman1

The problem is that Heineken got publicans to take out competitor beers especially lager, so you had Guinness as a staple but then all Heineken products like birra Moretti, orchards thieves , irelands edge but no Bulmer or Carlsberg on draught.

So hopefully they will now be putting back in Carlsberg taps ,but maybe diageo are waiting on the sidelines to see the repercussions from Heineken increases

MrMusician18

https://www.boards.ie/discussion/comment/119910974#Comment_119910974

No, publicans have said that the increases will be in the order of 50c to "maintain margins". Complete nonsense.

asdfg22

https://www.boards.ie/discussion/comment/119910868#Comment_119910868

The bit that i think is mad is they are blaming the breweries for raising prices of the products they sell. Publicans are selling on the exact same products and they are saying breweries should not increase the price and as we all know cost of everything is going up.

However according to what i read these same publicans raised the price of pints quietly by average of 47 cent after Covid, it was pretty clever move as we were all happy to see pubs open. I personally think they should take most of the hit as they increased product already when there was not an increase by supplier.

Can you imagine if filling stations in Ireland were allowed put 5/10 cent on a litre of fuel without it increased by supplier.

endofrainbow

My local stopped serving Carlsberg a few years ago. It did indeed backfire and a few months later was reinstated.

Allinall

https://www.boards.ie/discussion/comment/119911173#Comment_119911173

Filling stations can rail their prices by whatever they want, regardless of whether the supplier increases theirs, or not.

It's competition that keeps prices at a certain level.

walterking

https://www.boards.ie/discussion/comment/119911133#Comment_119911133

This is how many businesses operate.

They take a cost price, add a percentage and then add vat.

I think a pint costs about €1.80 (ex vat) to pubs. A regular pub would probably use a multiplier of 2.5 bringing this to about €5.50 incl vat.

If they still use the same multiplier that brings it up by 50c (17c x2.5 + vat)

Maybe the pricing model needs to be looked at

asdfg22

https://www.boards.ie/discussion/comment/119911133#Comment_119911133

I herd one publicam stating on air the increase be 40 cent to maintain margin, there was no mention of the increases over this year when Covid ended. What justified the increase?

Of course they need to fallow the trade but they took a head-start and are now whinging that the have to go again. Take the hit and get on with it is my view.

I expected people here would confirm how much and when prices increased and when as i do not know only what i read.

It looks like a dying trade and they are killing it. pity really. I love a few pints.

Cabaal

It's going to be some fun when Diageo increases their prices in Q1 2023, after all they've only said they won't increase prices in 2022.

kippy

Outside of major towns and cities and even in some, the numbers of pubs will continue to decrease.

People will and are cutting back on drinking in pubs for a few reasons.

I've heard a lot of hotels even reviewing their offerings for hosting wedding and some cutting the service altogether. Public liability insurance has gone through the roof, excesses have increased and ALL input costs food, elec and heat, labour etc have all increased so much that the per head cost is at a point that people are reducing their invites and really not making the business worth it for hotels.

I am sure it's the same for pubs. Most people can't sustain those prices and the only result is a continuing decline in pubs no matter what the multipliers for costings or otherwise.

Owning a pub(and working in same) is a very tough gig.

Cabaal

Many places had way too many pubs in fairness, in the 1980's and into the late 90's locally to me had 13 pubs.

That was more pubs then there were shops in the town which is just stupid!, now it has 5.

A pub is a hard game for that matter any self employment can be a hard game, but it's also important to remember that pubs do cause a lot of harm too when it comes to excess drink and there is a larger society cost to this. These days if you are a pub that doesn't also do food then you will be going out of business, it's only a matter of time.

We've seen many rural pubs close because drinking and driving isn't ok, yet we still have people that try justify drink driving which is just crazy.

Princess Consuela Bananahammock

https://www.boards.ie/discussion/comment/119912785#Comment_119912785

It's actaully x3 to be fair.

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Regarding the publicans not stocking competitive brands - that sounds like a stupid move; and for this very reason. There are lots of pubs and lots of beers and if they only stock the ones that are increasing in price, customers are going to vote with their feet.

asdfg22

https://www.boards.ie/discussion/comment/119918765#Comment_119918765

Its basically a con-job by the license telling customers they are supporting the customer.

They forgot to mention that they had already taken a nice little increase after Covid.

I notice one guy who said he was de-stocking Hein has changed his mind.

Trigger Happy

Its like there is gouging going on from wort to glass. It is punters who ultimately decide whether they want to pay or not...but we keep on buying overpriced beer in pubs.

asdfg22

I wonder how much did Heineken actually go up, i was away and have not been in an Irish pub since increase, also did the bottles also go up...

C3PO

https://www.boards.ie/discussion/comment/119996171#Comment_119996171

Moved recently and started frequenting a different pub in South Dublin. Nice local pub close to Vincent’s Hospital - comfortable with good food …. €7.00 for a pint of Heineken! I don’t drink enough for it to particularly bother me but I was a bit shocked when I got the 1st pint! 😀