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Diageo Doubles Investment in Guinness 0.0
Dive Brief:
- Diageo has announced plans to double its investment in Guinness 0.0, the popular alcohol-free alternative brew. The Irish brewer is investing an additional 30 million euros ($32.5 million) into producing the nonalcoholic beverage at its St. James Gate brewery in Dublin.
- According to Nielsen data, volume sales of Guinness 0.0 draught have increased by nearly 50% between February 2023 and February 2024.
- With the rising popularity of nonalcoholic beer, Ireland’s iconic stout is making a significant bet on the category’s growth.
Dive Insight:
Diageo’s increased investment in zero-proof Guinness reflects the growing trend of consumers choosing to moderate their alcohol consumption or go completely alcohol-free.
Producing Guinness 0.0 is a more intricate process compared to its alcoholic counterpart, taking an additional two days. The brand utilizes the same brewing process as traditional Guinness, followed by a cold filtration method to remove the alcohol content.
Since its launch, Diageo has invested a total of 60 million euros ($65 million) in Guinness 0.0. The additional funding will allow the company to maintain a strong focus on quality control for the beverage.
Aidan Crowe, the beer operations director at Diageo, emphasized the brand’s commitment to innovation and quality with Guinness 0.0, delivering the same premium experience without the alcohol content.
Diageo’s investment in the non-alcoholic space extends beyond Guinness 0.0, with recent acquisitions and brand alterations. In September, the company acquired Ritual Zero-Proof Non-Alcoholic Spirits, a leading U.S. brand offering alcohol-free alternatives to spirits like rum, whiskey, and tequila.
The nonalcoholic beer market, led by brands like Athletic Brewing, continues to grow in popularity. New players like Bero, founded by actor Tom Holland, are entering the market with low ABV brews to cater to the expanding consumer demand.