Pub-goers across the United Kingdom will need to dig a little deeper for a pint of the black stuff from next spring, after drinks conglomerate Diageo confirmed wholesale price increases for some of its most popular brands.
The Details of the Diageo Price Hike
From 1 April 2026, the cost of a pint of draught Guinness served in pubs is set to rise by approximately 4p. This represents a 5.2% increase in the wholesale price that landlords pay. Meanwhile, the standard 70cl bottle of Smirnoff vodka will see its list price climb by 13p.
A spokesperson for Diageo explained the move, stating the company must "carefully manage the rising cost of doing business." They emphasised that efforts had been made to keep the increases as low as possible. The price adjustments, they added, are necessary to continue investing in the brands and to support initiatives aimed at fostering mutual growth with hospitality sector customers.
Not all Diageo products are affected. The company confirmed that prices for Tequila brand Casamigos, Baileys, Guinness 0.0, Guinness Microdraught, and Guinness Draught in Can will remain unchanged for now.
A Fresh Blow for the Struggling Pub Sector
The announcement lands as a significant blow to the UK's pub industry, which is already on tenterhooks awaiting details of a promised government support package. The sector is braced for a business rates hike in April, announced in the recent budget, though there are indications this increase may be reversed.
Prominent figures in hospitality have reacted with dismay to the prospect of limited, pub-specific government aid. Michelin-starred chef and pub owner Tommy Banks criticised the anticipated package as a "crazy" PR stunt that fails to address the wider crisis in hospitality.
Speaking after Sky News revealed a support package solely for pubs would be announced shortly, the Great British Menu winner warned the industry is suffering a "death by a million paper cuts." The 37-year-old described the government's approach as a "knee-jerk reaction" to a political campaign and called for a comprehensive, sector-wide strategy.
Broader Industry Pressures and Outlook
The Diageo price rise adds another layer of financial pressure at a precarious time. Industry analysts have warned that more than 500 pubs could close this year without adequate support, compounding the challenges of rising ingredient costs, energy bills, and wage pressures.
For publicans, the decision presents a difficult balancing act: absorb the extra cost and further squeeze already tight margins, or pass it on to customers who are also feeling the pinch from the cost of living. The coming months will be critical in determining the shape and sustainability of the UK's beloved pub landscape.
