E-Malt.com News article: World: Diageo sees significant opportunity to grow Guinness 0.0’s global presence

Diageo is taking its Guinness 0.0 non-alcoholic beer global, with chief executive Debra Crew saying there is a “significant opportunity” to grow its international presence, The Irish Independent reported on May 20.

“Guinness is a great example of our growth ambition in action,” Ms Crew said. “Guinness 0.0... has grown at a tremendous rate since launch, but arguably, we are only really getting started on what it can do.”

Diageo is planning to accelerate sales of traditional Guinness and the non-alcoholic version around the world, targeting Gen Z and female drinkers among its key growth levers.

It’s also planning to leverage its sponsorship of sporting events such as the Premier League and a continued focus on the Six Nations rugby championship.

Laura Merritt, president of Diageo’s North America beer market, said there is “significant runway for growth” for Guinness in the market there and that the beer’s sales are “thriving” in the US.

The US market has about $68bn (€60bn) of beer sales every year, while the non-alcoholic beer market there accounts for 1.5pc of sales. Ireland, the UK and the US accounted for 60pc of Guinness net sales in Diageo’s fiscal 2024 year. Guinness is the biggest beer brand in Ireland, accounting for a third of all pints served in the country. In the US, it’s the fastest-growing on-trade beer.

Speaking at the Guinness Storehouse in Dublin yesterday, Ms Crew effectively put an end to any lingering speculation that Diageo could sell the Guinness brand.

Guinness is Diageo’s third biggest brand, after Johnnie Walker and Smirnoff. Diageo is by far the world’s largest spirits group.

Launched in 2021, Guinness 0.0 has been a significant success story for Diageo. Despite that success, non-alcoholic beer still only accounts for about 2pc of the total beer market in Ireland.

Last year, Diageo announced an additional €30m investment at its St James’s Gate site in Dublin to cater for the increased demand for Guinness 0.0.

Ms Crew said that Gen Z – those typically born between 1997 and 2012 – is engaging in what Diageo calls “mindful” drinking.

“It’s forecast to be the largest generation ever, underpinning future growth,” Ms Crew said, adding that Diageo has done “a great job in recruiting women to Guinness”.

She told investors that Guinness sits well with a trend of consumers “looking for exploration”.

“Guinness holds an important place in our portfolio and is rightfully a key part of our strategy to recruit and premiumise consumers,” she said.

Diageo is also using AI to develop targeted advertising to consumers – a key tool in its plans to grow Guinness sales in Ireland and elsewhere.

The drinks maker shot down speculation earlier this year that it was poised to sell the iconic Guinness brand.

It had been reported that Diageo was exploring a potential spin-off or sale of Guinness, in what would have been the biggest corporate change for the Irish beer brand since it was merged with Grand Metropolitan in 1997.

Earlier this week, Diageo announced plans to save $500m (€444m) in costs by 2028 following years of sales declines.

The new programme will be backed by “appropriate and selective disposals” in coming years, according to Diageo.


21 May, 2025