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Diving overview:
- Diageo has doubled its investment in Guinness 0.0, its non-alcoholic alternative beer, which first launched in 2020. The Irish brewer has invested an additional 30 million euros (about $32.5 million) to produce non-alcoholic beverages at its St. James’s Gate brewery in Dublin.
- Sales of Guinness 0.0 Draft increased nearly 50% between February 2023 and February 2024, according to Nielsen data cited by the company.
- As non-alcoholic beer becomes a force to be reckoned with, Ireland’s most famous stout is betting big on the category’s growth.
Dive Insights:
Diageo’s investment in Zero Proof Guinness will help the brewer continue to scale up the drink for the growing number of people who choose to moderate their drinking or quit drinking altogether.
Production of Guinness 0.0 is more complex than its alcohol counterpart and takes two days longer, the brand said in a press release. It uses the same process used to make Guinness, followed by a cold filtration process to remove the alcohol.
Diageo has invested 60 million euros, worth about $65 million, since the launch of the drink. The company said the additional funding will allow it to continue prioritizing quality control of its beverages.
“Guinness has a long history of innovation and delivering the highest quality products, and we are continuing this with Guinness 0.0. That means producing the same great taste, quality and premium experience that people expect from a brand like Guinness. Aidan Crowe, director of beer operations at Diageo, said in a press release:
The investment comes as Diageo is working to strengthen its position in the low-alcohol and no-alcohol segment by revamping existing brands and acquiring new ones. In September, the company acquired Ritual Zero-Proof Non-Alcoholic Spirits, the highest-grossing non-alcoholic spirits brand in the U.S., according to IWSR data. This brand produces alternatives to rum, whiskey and tequila.
Non-alcoholic beer continues to grow in popularity, led by category leader Athletic Brewing, and new brands are aiming for a piece of the pie as it grows significantly. This month, Spider-Man actor Tom Holland debuted Bero, which launched three 0.5% ABV beers.
