Drinkers across the UK are set to feel a pinch in their pockets from the start of April, as the maker of Guinness announces a significant price increase for its iconic stout.
Diageo Implements Wholesale Price Increase
Diageo, the global drinks giant, will impose a price hike on a range of its products from April 1, 2026. Internal documents reveal that the wholesale cost of Guinness Draught is scheduled to jump by 5.2 per cent. This translates to an increase of approximately 4 pence per pint at the list price level, a rise that is likely to be passed on to consumers in pubs and supermarkets.
A company spokesperson attributed the increases, announced on January 13, to the “rising cost of doing business.” They stated, “We have kept today’s cost price increase to a minimum, reflecting the rising costs in our supply chain.” The change affects not only Guinness but also other major Diageo brands, including Smirnoff vodka, Captain Morgan rum, and Don Julio tequila.
Strategic Shifts and Asset Sales
This pricing move coincides with a period of strategic portfolio review for the company. Diageo is reportedly considering selling its Chinese assets, where sales have been declining, with the help of advisors Goldman Sachs and UBS. Its holdings include a majority stake in Shanghai-listed Sichuan Swellfun.
This follows a major divestment completed just before Christmas. Diageo struck a $2.3 billion (£1.7 billion) deal to sell its 65% shareholding in East African Breweries (EABL) to Japanese giant Asahi. The sale, which also included its stake in Kenyan spirits business UDVK, is part of a clear strategy to sell off non-core parts of the business to bolster finances. Diageo will maintain a long-term licensing agreement to ensure Guinness continues to be produced and distributed in the region.
What This Means for UK Consumers
The immediate consequence for British pub-goers and shoppers is straightforward: paying more for a pint of Guinness and other Diageo products from spring onwards. The 5.2% wholesale rise is a direct response to sustained pressures on the company's supply chain and operational costs.
This price adjustment highlights the broader economic challenges facing consumer goods companies. Diageo's parallel actions—raising prices in its core market while streamlining its international portfolio—demonstrate a dual approach to navigating current financial headwinds and focusing on its most profitable operations.
