EAST CORK PUBLICANS SEEK NATIONAL SUPPORT FOR PRICE HIKE PROTEST
By Christy Parker | Photo: Michael Hussey (YoughalOnline.com)

Publicans in East Cork are seeking national support in a protest action against price increases imposed by suppliers Diageo. The vintners have begun withdrawing draught Carlsberg from their premises in protest and are also removing the company’s Smirnoff vodka and other products and advertising from prominent display. Guinness and Baileys are amongst other Diageo lines. 

The action follows Diageo’s decision to increase their supply costs by 5c per pint, resulting in a 10c increase at the tap. It is the second increase since last March. With October’s budget expected to add another 10c, the publicans fear consumers cannot absorb the costs. Rival brewery Heineken, which has also agreed a price increase, may face a similar response. 

While competition legislation means Vintner Federation branches cannot be seen to orchestrate boycotts, individual vintners can decide their own stock. Seamus Curran, proprietor of the Quay’s bar and nightclub, Youghal, says, “I’m doing this to protect jobs in the long term. The industry cannot sustain these price increases.”

Michael Farrell of Youghal’s Summerfield Bar and also vice-chairman of the Cork County VFI, says, “This increase could not have come at a worse time. He quotes reduced barley prices “from €220 to €180 a ton” as further evidence of “an inexcusable increase.” 

PRO for Midleton and District Vintners Association, Pat O’Meara says members made a collective decision act in tandem with the Youghal initiative. He adds, “A poster campaign is being run in the area, to better inform customers. This is the start of a co-ordinated campaign and we are seeking national support.”

Vintners Federation of Ireland President Val Hanley says the organisation does not support a boycott. Cork County VFI Chairwoman Catherine Cahill echoes the view but says vintners are “outraged” by the increase which, she says, “was agreed in July when oil was €148 a barrel. It’s now well under €100. It cannot be justified.”  

September’s VFI National Executive Council’s meeting in Birr, saw Cork propose “some form of protest” against what they perceived as Diageo’s market control. Of 58 delegates, only 17, from four counties, voted in favour. “Unfortunately, many large pub executives are getting big rebates and incentives, especially from Diageo. So they won’t protest,” claims one delegate

Meanwhile Mr. Farrell claims the VFI hierarchy is out of touch with the opinions of grass root publican and criticises “a cartel situation” between the two main breweries. “I salute the opposite stance taken by suppliers like Beamish & Crawford and Showerings,” he adds. 

Corporate Relations Manager, Grainne Macken, says Diageo are “surprised and disappointed” by the action and “concerned” for Diageo consumers. She says the 2% wholesale increase reflects increased costs across a wide area, including manufacturing and packaging materials. “We are also using barley harvested in 2007, which was 60% up on 2006 prices,” she added.