Publicans frustrated with Diageo

More than 200 Dublin publicans are refusing to co-operate with the marketing activities of brewing giant Diageo in an escalating…

More than 200 Dublin publicans are refusing to co-operate with the marketing activities of brewing giant Diageo in an escalating row over price increases.

Frustrated over what they claim is an unjustified six-cent rise in draught beer prices imposed by Diageo, the publicans say they will not allow in-pub promotions for Diageo brands - which include Guinness, Budweiser, Carlsberg and Smirnoff - and plan to remove beer mats and other advertising materials.

The protest was first mooted at a meeting of Licensed Vintners Association (LVA) members this week but does not have the official sanction of the organisation, which represents publicans in the capital but is legally prohibited from advising them on pricing.

The dispute could not come at a worse time for either the pub trade or Diageo.

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Publicans say the price increase is a double blow as it arrives on the back of the smoking ban. "There is a lot of anger among publicans. They asked for the price rise to be put back because they are still coming to terms with the smoking ban. But Diageo has refused to listen.

"It doesn't appear ready to compromise," said LVA sources which stressed the organisation could not condone the action.

The organisation would not comment officially.

Diageo, which is struggling to reverse a sustained decline in sales of Guinness, said it had already deferred the price rise from March to June following requests from publicans.

It remains unclear precisely how many of Dublin's 700 LVA members will join the protest. "Diageo is a big player and some publicans may not wish to get on their bad side. But there is a lot of dissatisfaction about the way they have gone about this," said trade sources. "Feelings among publicans are running very high."