This is the fourth tourist destination for Guinness, following the Storehouse at its St. James’s Gate location in Dublin, along with microbreweries in Baltimore and Chicago.
However, similar to the American locations, the central London venue will not brew the stout. Instead, it aims to produce approximately 750,000 pints annually of other beers, including a London porter and a lager — merely a fraction of what is produced in Dublin. Guinness will still be imported.
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Once regarded as a traditional drink for older men, Guinness has seen a revival recently, especially among Gen Z drinkers and women. The new 54,000-square-foot venue, opening shortly before Lewis takes charge, is part of Diageo’s strategy to sustain Guinness’s successful trajectory, although this is now jeopardized by the growing popularity of competitors’ stouts such as Heineken NV’s Murphy’s, alongside weakening consumer confidence.
Lewis, who previously led Britain’s largest supermarket chain Tesco Plc, faces the challenge of rejuvenating a company whose stock has fallen around 60% since its Covid peak in January 2022, compounded by management upheaval, lackluster sales, and consumers tightening their budgets.
More generally, the industry is contending with reduced alcohol consumption among health-conscious consumers, to the extent that the UK government predicts a notable decline in revenue from alcohol duties in the coming years.
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Organic net sales of Guinness increased by 13% globally in the year ending June, although this reflects a slight deceleration compared to the 15% growth recorded the previous year. The beer was so popular that it ran out in pubs across the UK last December, as Diageo struggled to keep up with soaring demand. The company assures that it will have sufficient supply this Christmas.
The Netflix drama House of Guinness, which explores the founding family’s history, is anticipated to further enhance its popularity among a broader audience.
Guinness 0.0, the non-alcoholic variant, has also enjoyed significant success. Last year, it became the best-selling non-alcoholic beer in Britain and is especially favored by younger drinkers opting for alternatives to alcohol.
(Edited by : Jerome Anthony)
