Pint of plain is over a barrel on barley prices
Does Diageo, the maker of Guinness and a stable of leading brands, have a strategy?
The drinks giant revealed yesterday that demand in Ireland and southern Europe has taken a hit because of the dire economic conditions.
The rest of western Europe was generally weak compared with the same period last year, although the company declined to give a more detailed breakdown.
The announcement came as a survey here revealed that three quarters of publicans have seen spending on drink fall, while nine out of 10 said the number of weekly visits by customers have fallen.
Despite this, Diageo announced last week that it was hiking the cost of a pint by 5 cent, with Guinness and well-known lagers expected to see price rises.
Diageo blame the move on an increase in barley prices, but it seems to be an odd move given the state of trade in Ireland.