Price war erupts between Guinness and Murphy’s as Gen Z seek cheaper pints of popular stout

No longer seen as the preserve of older, male drinkers, social media influencers and celebrity endorsements have helped Guinness to a remarkable resurgence.

But with the iconic Irish stout’s new Generation Z fans having to pay £7 or more for a pint in some venues, anything which keeps prices in check is likely to receive a warm welcome.

Now pub bosses have revealed that Murphy’s – owned by brewing giant Heineken – is trying to persuade them to switch to the rival brand.

They have complained that Guinness is ‘incredibly expensive’ for them to buy in, meaning small profit margins at a time when the hospitality sector is under pressure from soaring bills and the cost of living crisis.

With Guinness owner Diageo struggling amid weak sales for its spirits brands, soaring sales of pints of the ‘black stuff’ have been a rare silver lining.

So its new generation of fans will be hoping the renewed competition will help when it comes to covering the cost of a round of drinks.

Celebrities such as Olivia Rodrigo, Kim Kardashian and even the Princess of Wales have been seen sipping on glasses of Guinness in recent years.

The Irish export’s iconic appearance has also gone down a storm on social media, including thousands of videos on TikTok as people share their search to find the perfect pint.

Soaring sales mean Guinness now accounts for a reputed one in every nine pints poured at British pubs

Soaring sales mean Guinness now accounts for a reputed one in every nine pints poured at British pubs

Pub chiefs say bigger profit margins are tempting them to switch to rival Irish stout brand Murphy's

Pub chiefs say bigger profit margins are tempting them to switch to rival Irish stout brand Murphy’s

So successful has the craze been that Guinness is now the best-selling beer in British pubs, accounting for a reputed one in every nine pints poured.

However the brand’s unlikely transformation has led to complaints from publicans.

They say the price per keg charged by Guinness is about 15 per cent higher than for Murphy’s, leaving them struggling to make much profit on each pint sold.

Murphy’s – which traces its roots back to 1856 – stole a march when its rival was hit by supply shortages last Christmas.

Since then, Heineken bosses have been wooing pub bosses keen to slake customers’ thirst for stout while making more money themselves, according to the Sunday Times.

As a result, the number of pubs stocking Murphy’s has surged to 1,550 outlets, it reported.

James Nye, the managing director of pub company Anglian Country Inns, which has swapped to Murphy’s in a handful of pubs, told the paper that Guinness had been ‘putting price increase after price increase through’.

‘I wouldn’t say Heineken are undercutting Guinness, I would say Guinness are outpricing themselves in the market,’ he added.

The Prince and Princess of Wales drinking glasses of Guinness on St Patrick's Day in 2017

The Prince and Princess of Wales drinking glasses of Guinness on St Patrick’s Day in 2017

But the dilemma for hospitality chiefs is the fear business will go elsewhere if they abandon Guinness, with drinkers steadfastly loyal to the brand.

‘The least amount of retail profit I get is off Guinness,’ Phil Thorley, owner of Thorley Taverns, which runs 18 pubs in south-east England, told the Sunday Times.

‘But if I take it out I could lose customers that go somewhere else because that’s the brand they want to be drinking.’

Industry experts say Guinness could face pressure if drinkers are persuaded to switch brand.

However whether that will save consumers money remains to be seen.

While some London venues charge £7 or even £8 for a pint of Guinness, across the country the average price is £5.75, according to pint-prices.com, compared to £5.83 for Murphy’s.

A Diageo spokesman said: ‘Guinness is priced very competitively in the marketplace and the average price of a pint in the UK is 8 per cent 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 country, all of which has made Guinness a footfall generator for pubs and bars.’

Source link

Related Posts

Load More Posts Loading...No More Posts.