Diageo has revealed plans to increase beer prices in Ireland. The drinks giant said yesterday (19 May) that it will raise its prices to publicans in the country by €0.04. This would lead to a price rise of around €0.10 on a pint of Guinness once value added tax is factored in.

Speaking to the Irish Times yesterday, a spokesperson for Diageo said that the increase is being introduced to recover costs that have increased in the last 12 months. "We will continue to invest in our products," the spokesperson added.

A consumer group in Ireland has attacked the move, and called on publicans not to make their own addition to the rise, the paper noted.

"This is very short-sighted of Diageo and it would be a disastrous step for publicans to take the usual step to add to that increase," Dermott Jewell of the Consumers' Association of Ireland told the paper. "It will not benefit them. The only thing it will do is drive more people away from pubs."

The increase will come into effect on 1 June and will cover all Diageo's beer products, including Guinness, Smithwick's, Carlsberg, Harp and Budweiser.