This morning, Diageo, which owns Guinness, released its half-year interim results, in which it reported operating profit declined 4.9% and reported operating profit margin declined 1.32%, primarily due to unfavourable foreign exchange and a decline in organic operating margin.
This comes as Diageo’s finance chief Nik Jhangiani said today that the company estimates operating profit could be dented by roughly $200 million if U.S. tariffs on Mexico and Canada are implemented in March. This could result in another fall of around 6% in operating profits for the company.
Therefore, some of the nation’s favourite beverages that the brand owns could see their prices rise as Diageo looks to make up the shortfall. Prices have already risen in the last few years, with the average price of a pint of Guinness in London currently at £5.66 and prices increased nationally by 8% from 2023 to 2024.
Neil Roarty, analyst at ClickOut Media, said, “Prices have already been raised over the course of the last year, with inflation remaining high, an unfavourable foreign exchange market, and a shortage of Guinness pushing costs up. However, Diageo owns a number of other brands, such as Bailey’s, Captain Morgan, Gordon’s Gin and more, meaning consumers and pubgoers could see prices rise across the board as the company tries to make up the shortfall caused by Trump’s tariffs.”
“It’s not clear what kind of effect the tariffs could have on prices at the bar, but we’re starting to see the potential knock-on effects of these policies on prices globally, and how they impact Brits and their everyday spending.”
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