Pubs in UK ration pints of Guinness in run up to Christmas

Following on from the previous post on Mexico and the market for tequila, there has been an opposite reaction in the Guinness market – increased demand and reduced supply.

The graph shows the significant increase in demand for Guinness (up 20% in the UK from last year) and the reduction in supply to the market caused by the theft and stockpiling – assuming Guinness is not sold back into the market (pubs). In theory Guinness could charge a much higher price for a pint which would may reduce and demand – however a Veblen Good’s demand curve slopes upwards. With some pubs starring at drought conditions they settled on issuing customer rationing cards.

Guinness rationing cards in pubs

The Old Ivy House in London printed up ration cards (see image) when they realised they were going to run out of Guinness after their supplier cut their usual order in half – punters had to get cards stamped with two other drink purchases before being allocated a Guinness. The Old Ivy received only 3 kegs in the second week of December instead of its usual 7 or 8. The pub settled on the customer ration cards to make the best of the situation, and ended up scoring a traditional and online media hit: “If you’re given lemons, make lemonade.”

Below is a belated Christmas song about Guinness

Sources:

Irish Times

Tutor2u blog

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