Guinness being ditched by pubs in favour of ‘cheaper’ different as stouts increase
It’s ale-out war between Guinness and Murphy’s and while ‘the G’ is an Insta hit for photos more folk are actually drinking cheaper Murphy’s Irish Stou
Guinness and Murphy’s have declared ale-out war with many pubs ditching ‘the G’ as too expensive. Landlords trying to bring punters the cheapest pint are being lured away from the iconic Dublin drink by Murphy’s which they can buy and sell cheaper.
One insider at a major pub company said: “Guinness is incredibly expensive and you’ve got nowhere to turn in a negotiation.”
A senior industry executive said Guinness may be Instagrammable with young revellers desperate to post pictures online of them alongside a pint. But many had actually started drinking Murphy’s to save cash.
Guinness was the ‘lowest percentage margin product in most pubs’, the exec added. The average UK price per pint of Guinness is £5.13, according to industry data, with some London pubs charging nearly £8.
Bars are under pressure from high energy bills and soaring labour costs. Pubs are paying about a fifth less – £130 to £135 – for an 88-pint keg of Murphy’s than for Guinness which costs £150 to £155.
James Nye, managing director of Anglian Country Inns, said he had switched some of his pubs to Murphy’s which is owned by Heineken.
He said Guinness, which is owned by rival Diageo, has ‘an amazing brand’ that is ‘phenomenal for marketing’. But ‘the way they treat their customers I don’t blame’ pubs for switching, he said.
It’s Guinness who have been putting price increase after price increase through.
“I wouldn’t say Heineken are undercutting Guinness. I would say Guinness are out-pricing themselves.”
Murphy’s Brewery was founded in 1856 and became one of Ireland’s biggest brewers before Heineken bought it in 1983. The number of boozers stocking Murphy’s Irish Stout has surged in the past year to 1,500, according to Heineken data.
Phil Thorley, owner of Thorley Taverns, which runs 18 pubs, said he would charge less for Murphy’s.
“We’re at about £6.50 for a pint of Guinness. I might sell Murphy’s at £6,” he said. “Heineken have done a me too’ product with Murphy’s. It’s a very good product but it’s not Guinness. The least amount of retail profit I get is off Guinness. But if I take it out I could lose customers.”
Heineken began its charm offensive during a national shortage of Guinness earlier this year caused by a combination of higher demand and supply chain disruptions leaving pub bosses to look for alternatives. Heineken sales director Will Rice said: “Hundreds of new pubs began stocking Murphy’s.”
It still faces a battle to overhaul Guinness which is one in every nine pints poured in the UK. Guinness is the only beer sold by Diageo – the FTSE 100 drinks group whose main business is spirits such as Johnnie Walker, Smirnoff and Gordon’s.
Bosses have claimed its recent success is due to a new-found appeal among younger drinkers, especially women. The boom has proved to be a silver lining for Diageo at a time when its spirits sales have flagged and the firm’s share price has fallen by more than a quarter in the past year.
A Diageo spokesman said: “Guinness is priced very competitively. The average price of a pint in the UK is 8% lower than the average for world premium lagers.
“We have invested significantly in building the brand and in delivering high-quality pints in pubs across the country, all of which has made Guinness a footfall generator for pubs and bars.”
