Heineken will delay the full success of a price hike that will add about 25 cents to the price of a pint of beer for pub patrons.
The brewing giant wrote to innkeepers earlier this month to tell them it was increasing the price of kegs by the equivalent of 17 cents a pint.
This is excluding VAT, with the expectation that the price of a pint at the bar would be around 25 cents more.
However, the Irish Independent has learned the increase is being partially rolled back – with a rebate offer meaning the additional wholesale price will instead rise by around 10p a pint for the next three months before the full higher rate kicks in.
Heineken Ireland said it had decided to temporarily support restaurateurs, hoteliers and restaurant operators by offering a transitional rebate for a three-month period.
“Heineken Ireland has listened to the concerns of some of its customers regarding the timing of the price increase and has taken steps to address this issue,” the company said.
However, the brewery said it was facing unprecedented pressure on all input costs and had no choice but to pass on some of those cost increases.
“The challenges created by these cost pressures have not changed and as such the previously announced price increase of 9 percent (17 cents per pint of Heineken) comes into effect on December 1, 2022.”
A temporary 3.5 per cent rebate on all keg shipments means the increase is 10 cents for the first three months.
The first news of the price increase, so far believed to be the largest of any major brewery here, had caused an uproar among innkeepers and drinkers.
The partial reversal could be too late for some hosts, who said they would look for alternative suppliers after the increase was announced.
The new prices are expected to apply from December 1st.
In addition to Heineken, the price increase applies to Coors Light, Moretti, Beamish, Foster’s, Murphy’s, Orchard Thieves, Appleman’s, Tiger Cute Hoor IPA and Lagunitas.
The Dutch beer giant employs over 400 people in Ireland.
A recent survey by Independent.ie found that some pubs in Dublin are already charging up to €8.95 for a pint of Heineken, up to €6 in Cork, Limerick and Galway, €5.90 in Waterford and €5.50 in Drogheda before the new prices come into force in.
https://www.independent.ie/business/irish/heineken-to-delay-full-hit-from-its-controversial-price-hike-until-new-year-42170601.html Heineken is postponing the full success of its controversial price increase until the new year