Drinks giant Diageo gambles on Guinness Zero boom
Diageo is betting big on the success of its alcohol-free beer, Guinness Zero. The company intends to serve the drink in every UK pub that already offers traditional Guinness on draught, aiming to boost investor confidence through this expanding market segment.
Focus on non-alcoholic growth
The FTSE 100-listed company will provide an investor update this week following the sudden departure of its CEO, Debra Crew, in July. The move comes as Diageo faces softer demand, with more consumers reducing or giving up alcohol.
In response, the company—owner of brands such as Johnnie Walker whisky and Smirnoff vodka—is pushing to expand sales in the growing “no and low” alcohol category. Interim CEO Nik Jhangiani said Diageo can benefit from the global shift toward drinking in moderation, despite its shares falling almost one-third this year.
“Guinness Zero is central to the revival strategy,” said Jhangiani. “It represents how moderation can still mean growth.”
The rise of Guinness Zero
Since its launch in pubs in 2022, Guinness Zero has become the UK's best-selling alcohol-free beer. The drink now makes up about 14 percent of all beer brewed at the historic St James’s Gate Brewery in Dublin. Due to its success, Diageo is preparing to clear space by moving some non-beer brands from the facility.
Guinness in the cultural spotlight
The Irish brewing legacy also gained renewed attention after the release of Netflix’s drama House of Guinness featuring Louis Partridge, further boosting the brand’s visibility and cultural relevance.
Author’s Summary: Diageo’s expansion of Guinness Zero shows the company’s determination to capture the growing moderate-drinking market despite leadership changes and weakened investor sentiment.