SYgle>Industry Information>Diageo pledges action on UK Guinness shortages as Christmas demand hits “unprecedented levels”

Diageo pledges action on UK Guinness shortages as Christmas demand hits “unprecedented levels”

Column: industry Tag: Diageo,Christmas Published: 2024-12-20 10:38 Source: www.foodingredientsfirst.com Author: Sade Laja

Drinks group Diageo has vowed to replenish Guinness stock in the UK after an unexpected rise in demand has resulted in some pubs offering ration cards to customers to ensure they have enough stock to last over the Christmas holidays.

The surge in popularity of the stout comes from younger Gen Z drinkers and TikTok trends such as “Splitting the G.” The trend involves drinkers attempting a single first sip so the remaining liquid ends up with the middle line of the letter “G” on the glass’s side logo.

Indications that the shortage was becoming a significant problem for pubs across Britain became apparent when Tim Martin, founder and chair of major pub company JD Wetherspoon, told the Financial Times in an interview this week that Diageo had “better get brewing” after its bars experienced shortages.

The situation was so extreme for some establishments that pubs such as The Old Ivy House in Clerkenwell, London, reported offering their customers ration cards. These came with a stipulation that people had to buy two regular drinks before they could buy their Guinness ration.

Stock replenishment

A spokesperson for Diageo tells Food Ingredients First that while it has no public data for November yet, it has seen “an exceptional spike in our peak season, even by Guinness’ standards.” It will begin a “carefully managed” stock replenishment from January 6 to ensure its supply chain returns to normal stock levels.

“Demand remains at unprecedented levels, and we will continue to allocate supplies on a managed basis until the end of December before beginning a phased replenishment of the supply chain in January to ensure a return to normal for the Guinness Six Nations,” says the spokesperson.

“We are grateful to all our customers for their engagement, collaboration, and patience over the past three weeks. We are producing more Guinness today than we ever have in our 265-year history, and we continue to work closely with customers across our network to manage Guinness distribution as efficiently as possible, ensuring we maximize supply and minimize disruptions for pubs and retailers.”

Meanwhile, a spokesperson for JD Wetherspoon took a more temperate tone than its chair, Martin, on the matter. “Currently, all Wetherspoon pubs are fully stocked with Guinness. Further deliveries are expected this week,” they tell Food Ingredients First.

Highlighting the spike in demand, figures up until November 2 from F&B analysts CGA shows that from July to October, the total beer category volume declined 0.5% compared to last year. In the same period, Diageo beer outperformed the market and grew volume by 23.2%. Within this, Guinness in keg grew 20.9%.

A Guinness revival

Previously associated with older male drinkers, Irish pubs and sports like Rugby, the drink has experienced a renaissance in recent years, particularly among women and younger drinkers.

Diageo has made a concerted effort to appeal to a broader demographic in its marketing strategy. Viral traction on social media platforms has also catapulted the once “dated” brand into cultural relevance.

The drinks group says it wants to keep the momentum going and plans to invest €30 million (US$31 million) into its St James’s Gate brewery to cater to the soaring demand for Guinness 0.0. It is also currently building a new €200 million (US$208 million) carbon-neutral brewery on a greenfield site in Little Connell, Newbridge, Co. Kildare, which it hopes will ensure significant growth in its global beer output.

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