Furious Irish pub takes stand against Diageo price hikes with Guinness discount scheme

A bar in Dublin has promised to unplug some of its beverages in protest of Diageo’s most recent price increase and has pledged to maintain Guinness pints at €5 via a cash discount program.

Kavanagh’s Pub in Dublin 8 is responding to Diageo’s pricing increase by taking out some of the taps for the company’s drinks. Customers are also being rewarded for using cash at the premises.

Following Diageo’s announcement, Kavanagh’s Pub said, “Our Guinness will stay at €5.00. Yes, that’s right just FIVE EURO on 1 condition…..Pay with cash.”

The proprietor of Kavanagh’s bar, located on New Street in the Liberties, has vented his annoyance on social media following Guinness owner Diageo’s decision to raise the price of its kegs this week for the third time in 18 months. The increase works out to be €5.28 per keg or 6c per pint.

Diageo attributed the price increase to increased input costs across all of its Irish operations, even though energy and inflation expenses have lately decreased.

Publicans became angry when the multinational beverage giant raised the price of a pint by 12 cent in February of last year and then by an additional 4 cent in July. The company is the owner of numerous other well-known Irish brands, including Hop House 13 and Harp Lager.

Graham, the owner of Kavanagh, intends to discontinue the sale of several of their beverages, such as Rockshore and Hophouse, but he will maintain the €5 price for Guinness pints in order to accommodate the patrons, many of whom are elderly, and pay €20 for four pints, Dublin Live reports.

He wrote, “To say we are disappointed with yet another increase, (the 3rd in 18 months) would be an understatement. We are a small local’s local run by a Liberty boy, born and bred, who understands the needs of our customers.

“The last increases were down to operating costs and the huge rise in energy costs, those although unwelcome were understandable. However since then the industry has had three reductions in energy costs which for a company like Guinness would result in millions of euro in savings per annum,” he said.

“Alone we won’t make a dent on their profits but collectively we could. I’ll be starting by pulling some of their taps out by way of Rockshore and Hop House,” Graham added.

Continuing, Graham says, “We are not like the price gougers in certain areas of the city, we always try look after our locals. That’s why, yet again, we will absorb this third increase in 18 months on Guinness with our discount scheme for customers paying with cash and leave it at €5.

“A good portion of our customers are senior citizens who never moved to the modern card and tap era so for them they can still come in with €20 cash and have four pints. This is just for Guinness, for all other products, unfortunately, we will have to pass on the increase after our next delivery,” he said.

Numerous people have supported the announcement by leaving dozens of comments and hundreds of likes on the post on the pub’s Facebook page. One user commented, “Well done to that pub.” and another said, “Fair play, if every pub in the country did this it would soon soften Diageo’s greedy cough.”

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