Why does Diageo keep raising the price of a pint?

by OldVillageNuaGuitar

34 comments
  1. It’s a simple piece of arithmetic:

    1. Raise prices.
    2. Check how it affects profitability.
    3. Repeat steps 1-2 until it starts having a negative effect.

  2. Same reason as the rest of the hospitality sector, “fuck you” that’s why.

  3. Given that their letter always starts about rising costs, and year after year they are reporting record profits, I wonder that too. They should be the ones absorbing the increase, not passing it on to the publicans.

  4. Apparently Diageo are one of the few companies that research price sensitivity in a scientific way, so they know exactly how much the market will bear.

    I’d be happy to see Beamish and Murphy with a higher market share (for competition and so that their beer is not sitting in the lines going stale).

  5. Regardless of raw material costs and the rest increasing the tripe munchers at the top want their ridiculous payouts and bonus. How can we be told times are hard then company’s continued to rake in record breaking profits. It’s because some cunt sitting on his yacht needs another Rolex to keep his plastic wife feeling loved.

  6. They can fuck off now anyway, I stopped drinking Heineken and Moretti a year or two ago when they hiked up the price, I’ll stop drinking Guinness now too. 
    It’s annoying that Heineken own Beamish and Murphys as I do quite like them as alternatives to Guinness but it’s rare enough to have it in Dublin. I haven’t found a craft Irish stout that’s nice enough to have 3 or 4 of them in a night, they’re either too strong or have a gick aftertaste to them (I’m open to suggestions from anyone!)

    They’re driving people away from their own products and I’m sure we’ll see more pub closures in the next few years if these unjustified increases keep coming.

  7. Which alcohol brand is not made by Diageo out of interest ?

  8. I suppose the simple most obvious answer is corporate greed. There is also some genuine wine inflation but not to the degree they are increasing prices by.

    Diageo know they have cornered the market and can charge a price premium over their competitors. In the international stout market. Other competitors have very little presence in comparison.

    But what has given them scope and cover to do this is the government’s inflationary policies, what is seldom mentioned, but even more disgusting is how the ECB has debased devalued and essentially counterfeited the euro by printing it out of existence and driving up prices at ever increasing rates.

  9. It took me years to come around to Beamish but it’s a very good alternative to Guinness.
    The best I’ve had is in Kerry, for some reason.

    Murphy’s in Cork. Always.

  10. Because they are not a charity, and only care about profit for shareholders,,

  11. Less people are drinking so they increase their prices to make up for the shrinking revenue. When a company is public investors expect profits to raise every year.

  12. The thing I don’t understand is this. When Heineken raised their prices a few months ago, pubs all over the country took their product off sale and even covering the taps. Why will nobody do this with Guinness?

  13. Diageo is booming for the same reason that supermarkets are hiking big brands.

    Big brands = low price elasticity = price hikes

    Smaller brands/own label brands = higher price elasticity = lower prices and often higher quality.

    Ditch and switch.

  14. Because you people scoff ignorantly at socialist ideology.

  15. Companies are not immune to the rising prices of electricity and fuel that everyone is experiencing.

  16. They’ve lost market share in almost all of there brands they’re trying to make this back by increasing prices

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