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A PUB landlord has called for a boycott of Guinness in protest at rising prices.
Ted Docherty, who runs the White Hart in Nettlebed, has urged his customers not to drink the famous stout during the Six Nations rugby tournament, which begins tonight (Friday) to “send a message” to distributor Diageo.
This follows Diageo’s announcement that it has raised the price of Guinness by another 6.6 per cent, making it 27.5 per cent more expensive than it was in April 2022.
Mr Docherty says he may have to continue stocking Guinness because of its monopoly on stout but is considering stocking alternative whiskies, vodkas and rums to the ones provided by the distributor.
He is calling on other publicans to do the same.
In a statement, he said: “Diageo is raising prices quicker than any of the other brewers. There was no duty rise at the last Budget.
“We may have to stock Guinness but we don’t have to stock [Diageo’s] spirit portfolio. Plenty of branded spirits [are] as good if not better… if their sales of Guinness fell flat during the Six Nations, I feel that would send a message but it needs some solidarity.”
Mr Docherty, who has operated the White Hart since 2008 and also runs the Crown ay Playhatch, told the Henley Standard: “I don’t think it will achieve anything but it’s worth a bash.
“I want to send Guinness a message because it is their biggest selling time. It was my idea and hopefully we can get some solidarity and other pubs involved as well.
“No other beers have increased in price as much over the corresponding time, so why has Diageo’s?
“We have not yet costed it at a new price but it will probably approach £6.50 or £6.70 a pint.
“The problem with Guinness is that it is very difficult product to remove because of the demand.”
Mr Docherty said the days of making money from just selling beer were almost over.
He added: “If you sold Guinness to make what you made 10 years ago, you would be selling it at £8. We used to make 50 per cent profit or more but nowadays you’re lucky if you can make 35 per cent.
“We either pay for it or we delist it off our beers. The problem is it’s hard to find a replacement and most rugby guys want to drink Guinness.
“We will probably carry on stocking Guinness but maybe our way of responding to Diageo is de-listing other products they sell as a way of sending a message and, if we can, get other publicans to do the same.”
Rising supply prices is the latest in a series of challenges for landlords.
Mr Docherty said: “Coming out of covid was difficult and labour shortages and Brexit have not helped.
“We seem to move from one thing to another, such as the Ukraine war now. Inflation has not helped. It’s a constant challenge and I’m sure if you speak to anyone in the industry, they will say it’s difficult. I feel for all the guys in this trade as we have got to batten down the hatches.
“But you try to look for the positives in most things, try to exceed customers’ expectations and keep the momentum going.”
Other landlords supported Mr Docherty.
Dan Redfern, who runs the Cherry Tree Inn in Stoke Row, said: “Diageo is a massive company and has lots of brands but the rise in the price of Guinness is beyond reasonable. More than 27 per cent since April 2022 is crazy.
“The people who are serving their products have been through hell with energy costs, fuel and the living wage increasing and so many other factors. Rent is going up because of interest rates.
“The problem with Diageo is that they bought out all the competitors — Murphy’s Irish stout is not available to us.
“The question is, how do the customers feel if you swap it out with a Camden London stout, which is a better product but Guinness is Guinness.
“Guinness is a loss leader — it’s just there because you have to have it. If I don’t sell Guinness, we will lose a percentage of our drinking trade because people expect it.
“How much can you possibly charge? We’re on £6.60 already and have trade margins at 27 per cent. Is their cost of operations 20 per cent more? It is already expensive. We will be stocking other spirits because we can.”
Mr Redfern added: “We are busy and doing well but our overheads are extraordinary.
“Other pubs are shutting down. We are losing 10 pubs a day at the moment. You cannot bring them back because they become development sites. Once they’re gone, they’re gone. It’s part of our make-up, the British pub. Diageo doesn’t care and only sees it as a way to make money.”
Tracey Taverner, who runs the Five Horseshoes in Maidensgrove, said: “We agree that it is a huge price increase. Of course, with such a big increase you have got no choice but to put that on to the customer. But it’s difficult to get people out to the pub as it is with the cost of living crisis and everyone watching what they spend.”
A spokeswoman for Brakspear said: “Diageo has increased prices in excess of other brewers. This is disappointing, especially at a time when guests are already impacted by the cost of living crisis.
“We have worked to increase our range of alternative stouts which we encourage our business partners, along with their guests, to consider trying.”
Diageo did not respond to requests for comment.
• What do you think? Write to: Letters, Henley Standard, Caxton House, 1 Station Road, Henley or email letters@henleystandard.co.uk
02 February 2024
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