THE PINT may be about to become the latest victim of rising prices as Diageo Ireland has confirmed that it is considering an increase of up to 2 per cent on its wholesale prices.
Apart from the company's most famous product, the pint of Guinness, other well-known brands likely to be affected by an increase include Smirnoff vodka, Bailey's and Johnnie Walker whisky.
Rhonda Evans, a spokeswoman for Diageo, said that the company has the matter under "active consideration" and will reach a final decision over the next few weeks.
She said that consideration of the increase is a consequence of significant increased costs of raw materials and energy incurred in the past year and that Diageo "has sought to minimise the impact of these costs on our products for as long as possible".
Ms Evans added: "If we are forced to proceed with a price increase it will be for the minimum possible amount to recover some of these increased costs to the business and will be substantially below the current rate of inflation in food and drink products".
The Consumers' Association of Ireland has called on Diageo to reconsider price increases and suggested that they may backfire in the long run with falling sales.
James Doorley, chairman of the consumer body, said that any increase in alcohol prices will inevitably hit consumers as it will be passed on from publicans, with the possibility of further increases from Government.
"It is quite possible that the vintners will put their own increase in as well, and we can always expect that there will be an increase in excise in the budget, especially with how things are going economically" he said.
Mr Doorley added that he hoped that Diageo would consider looking at cutting its costs rather than relying on the consumer to pay more.
A 2 per cent increase in the price of a pint and across other Diageo products will alter prices depending on location, but will add nine cent to the price of a €4.50 pint of Guinness as might be paid in central Dublin.
The price of a small measure of Smirnoff and other spirits would increase by at least eight cent if Diageo decide to increase prices.
Drinkers have done well in recent budgets with alcohol left untouched in the last few years despite intense lobbying from the Health Service Executive and other groups concerned with the effects of alcohol.
However, many will now be concerned that in the current environment of falling tax revenue, they will be hit on the double if Minister for Finance Brian Lenihan turns back to one of the "old reliables".