Drinks giant Diageo gambles on Guinness Zero boom

Drinks Giant Diageo Bets on Guinness Zero Growth

Diageo aims to introduce its alcohol-free Guinness Zero in every UK pub serving the original on draught. This move targets a surge in non-alcoholic beverage demand to restore investor faith amid sales challenges.

Business Strategy and Market Response

The FTSE 100 company, which also owns Johnnie Walker and Smirnoff, plans an investor update this week following the abrupt departure of CEO Debra Crew in July. Diageo faces declining sales as consumers reduce or avoid alcohol.

Interim leader Nik Jhangiani emphasizes the firm's focus on moderate drinking trends, despite a nearly 30% drop in share value this year.

Guinness Zero's Market Impact

Launched in pubs in 2022, Guinness Zero has quickly become the UK's top-selling alcohol-free beer. It now represents 14% of all beer produced at the brand's historic St James's Gate Brewery in Dublin.

Due to its popularity, Diageo is moving some non-beer brands out of the brewery to make room for Guinness Zero production.

Cultural Spotlight

“Louis Partridge stars in hit Netflix series House Of Guinness,”

The Irish brewing heritage has gained attention recently with the release of the Netflix drama House Of Guinness, featuring Louis Partridge.

Summary

Diageo is leveraging the booming non-alcoholic trend by expanding Guinness Zero across UK pubs, as it seeks to revive growth amid shifting consumer habits and leadership changes.

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This is Money This is Money — 2025-11-05

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