What’s New?
Amid a shortage of the Irish stout on U.K. shores, Guinness-owner Diageo has spoken to Newsweek about the potential impact for U.S. consumers.
“Over the past month, we have seen exceptional consumer demand for Guinness in Great Britain,” a Diageo spokesperson told Newsweek. “We have maximized supply and we are working proactively with our customers to manage the distribution to trade as efficiently as possible.”
However, Diageo, whose other brands include Smirnoff, Baileys and Johnnie Walker, said that the matter was “isolated to Great Britain,” and was not a global issue impacting other markets such as the U.S.
Why It Matters?
The popularity of Guinness has grown over the past year, with the drink experiencing a particular uptick going into the holiday season. According to The Guardian, Guinness has experienced a newfound popularity among Gen Z consumers (roughly those born between 1997 and 2012), marked by influencers such as Kim Kardashian posing with the brew.
Between July and October, the overall amount of beer sold fell slightly while demand for draft Guinness grew by more than 20 percent, according to The Guardian, which cited industry analysts CGA.
The company told Newsweek that Guinness was outperforming the wider industry significantly, with order volumes surging over the past year despite a decline in demand for other beers.
“Guinness has witnessed unprecedented consumer demand over the past three weeks in Great Britain,” Diageo told Newsweek. “While we have no public data to show for it yet, it has been an exceptional spike in our peak season, even by Guinness’ standards.”
What To Know?
Pubs across Great Britain have reported running out of the stout, after Diageo imposed order limits as it struggles to keep up with the growing demand.
Pub landlords have reportedly started stockpiling the popular drink, a top seller in many establishments, and, as The Independent reports, have even introduced ration cards for customers to help stretch supplies throughout the festive season.
Diageo said it has worked to ramp up production to match with the brand’s popularity, reportedly fueled by growing number of young and female drinkers.
“We’ve made significant investment into Guinness over the past year to meet the brand’s growing popularity and demand,” the company told Newsweek.
Diageo said it is currently constructing a “new €200 million [nearly $210 million] carbon neutral brewery” in Little Connell, Kildare County in the Republic of Ireland, which will “enable significant growth in Diageo’s global beer output.”
In addition, Diageo is investing €30 million into its existing St. James’ Gate Brewery in Dublin, in order to “cater to the soaring demands for Guinness 0.0,” the drink’s nonalcoholic alternative.
What People Are Saying
Sir Tim Martin, founder and chair of British pub company Wetherspoons, in an interview with the Financial Times: “I think someone at Guinness has made a mistake … since we’ve worked with them for so long, we intend to forgive them. But they better get brewing.”
What Happens Next?
“We have responded as quickly as possible to maximize supply and manage allocations,” Diageo said. “We are working proactively with all our customers to manage the distribution to trade as efficiently as possible, to ensure demand keeps flowing.”
Do you have a story we should be covering? Do you have any questions about this article? Contact [email protected].
The post Guinness Shortage: Beer Maker Provides Update for US Customers appeared first on Newsweek.
