Diageo Bets on Guinness Zero Boom
Drinks giant Diageo is preparing to expand Guinness Zero, its alcohol-free variant, to every pub in the UK that serves Guinness on draught. The company hopes the growing market for non-alcoholic options will help restore investor confidence.
The FTSE 100 firm will update shareholders this week following the July departure of former CEO Debra Crew. The business faces slowing demand as more consumers reduce or give up alcohol entirely.
Diageo, which owns brands such as Johnnie Walker whisky and Smirnoff vodka, has committed to capitalizing on the rising interest in low and no-alcohol drinks. Interim boss Nik Jhangiani remains confident the company can benefit from the shift toward drinking in moderation, despite shares falling by nearly one-third this year.
Guinness Zero’s Breakthrough
Launched in pubs in 2022, Guinness Zero has quickly become the UK’s best-selling alcohol-free beer. The product now makes up about 14 percent of all beer brewed at Diageo’s historic St James’s Gate Brewery in Dublin.
“Guinness Zero is key to the revival,” said a company spokesperson, highlighting its place at the center of Diageo’s new growth strategy.
The widespread success of the drink has led Diageo to consider relocating some non-beer brands from the brewery to make additional space for production.
Cultural Spotlight
The brand’s profile has also been lifted by Netflix’s recent release of the drama House of Guinness, starring Louis Partridge, which explores the legacy of the Irish brewing dynasty.
Louis Partridge stars as a member of the storied Guinness family in the hit series.
Author’s Summary
Diageo is betting on Guinness Zero to revitalize its brand and boost investor confidence amid shifting attitudes toward alcohol-free drinking.