Diageo doubles nonalcoholic Guinness production

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Dive Brief:

• Diageo is doubling its investment in Guinness 0.0, the alcohol-free alternative brew first launched in 2020. The Irish brewer invested an additional 30 million euros — roughly $32.5 million — into producing the nonalcoholic beverage at its St. James Gate brewery in Dublin.
• Volume sales of Guinness 0.0 draught increased nearly 50% between February 2023 and February 2024, according to Nielsen data cited by the company.
• As nonalcoholic beer establishes itself as a formidable force, Ireland’s most famous stout is betting big on the category’s growth.

Dive Insight:

Diageo’s investment in its zero-proof Guinness will help the brewer continue to scale the beverage for the increasing number of people who are choosing to moderate their drinking or abstain altogether.

The production of Guinness 0.0 is more complex than its alcoholic counterpart, taking an additional two days, the brand said in the press release. It uses the same process it uses to create Guinness, followed by a cold filtration process which removes the alcohol.

Diageo has invested 60 million euros, worth nearly $65 million, in the drink since its debut. With the additional funds, the company said it can continue to prioritize the quality control of the beverage.

“Guinness has a long history of innovation and delivering products of the highest quality, and we continue to do that through Guinness 0.0 – producing the same great taste, quality and premium experience that people have come to expect from a brand like Guinness, just without the alcohol,” Aidan Crowe, the beer operations director at Diageo, said in the press release.

The investment comes as Diageo is working to boost its presence in the low and no-alcohol space by altering its existing brands and acquiring new ones. In September, the company bought Ritual Zero-Proof Non-Alcoholic Spirits — the highest grossing U.S. booze-free spirits brand according to IWSR data — which produces alternatives to rum, whiskey and tequila.

Led by category leader Athletic Brewing, nonalcoholic beer continues to gain steam, with new brands aiming for a slice of the pie as it grows in prominence. This month, Spider-Man actor Tom Holland debuted Bero, which launched three 0.5% ABV brews.