Hospitality

Rural pubs cannot absorb Diageo price hike as ‘margins are too tight’

Margins already squeezed to the max, says Galway publican, with ‘one or two’ pubs closing every week around the country

Rural pubs will be forced to pass price rises imposed by Diageo on to customers. Picture: Getty

A prominent Galway publican has said pubs will have to pass Diageo’s increase in costs on to customers.

The drinks giant last week announced an increase the cost of its entire range of trade products from the start of February due to inflationary pressures. The move means publicans will have to pay Diageo an extra 12 cent plus Vat for every pint.

“Our margins are too tight, we can’t absorb that,” Cathal Sheridan, who owns ...