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Diageo Investing €25m To Boost Production of Non-Alcoholic Guinness

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Diageo Investing €25m To Boost Production of Non-Alcoholic Guinness

 

Diageo, the multinational alcoholic beverages company, has revealed its intention to invest €25 million in a new facility at its St. James Gate premises in Dublin, Ireland. The investment aims to expand the production of its Guinness 0.0 brand, a non-alcoholic variant of the renowned stout.

The new facility will house six additional processing units, providing a combined capacity of 500,000 hectoliters. This expansion comes in response to the increasing demand for Guinness 0.0, which was first introduced in 2021. With the implementation of this investment, the production of Guinness 0.0 is projected to surge by approximately 300%.

By investing in the production of Guinness 0.0, Diageo is capitalizing on the growing market for non-alcoholic beverages. The rise of health-conscious consumer trends and the desire for alcohol-free options have fueled the demand for non-alcoholic beer alternatives. Diageo’s investment reflects its commitment to meeting consumer preferences and expanding its product offerings to cater to a broader range of customers.

The decision to invest in the St. James Gate premises in Dublin, a historic location associated with Guinness, further solidifies Diageo’s dedication to its heritage and the brewing traditions associated with the brand. This investment not only serves to enhance production capabilities but also contributes to the local economy and employment opportunities in the Dublin area.

Overall, Diageo’s €25 million investment in a new facility underscores its strategic focus on meeting the evolving needs of consumers by expanding the production of Guinness 0.0. This move aligns with the growing demand for non-alcoholic beverages and demonstrates Diageo’s commitment to innovation within the beverage industry.

Barry O’Sullivan, the Managing Director of Diageo Ireland, expressed his enthusiasm for the expansion in production capacity at St. James’s Gate and highlighted the growth of the non-alcoholic category. He emphasized that consumers are seeking more choices for various occasions, and the quality of Guinness 0.0 reflects this trend. O’Sullivan expects Guinness 0.0 to become another success story for Ireland’s exports.

Reports indicate that Diageo projects Guinness 0.0 to make up approximately 10% of all Guinness sales in Ireland in the coming years. This forecast demonstrates the company’s confidence in the demand for their non-alcoholic stout and its potential to become a significant portion of overall Guinness sales. The anticipated market share underscores the popularity and appeal of Guinness 0.0 among Irish consumers.

As the non-alcoholic category continues to grow, Diageo’s investment in expanding the production of Guinness 0.0 reflects their commitment to meeting consumer preferences and capitalizing on market trends. With the quality and reputation of Guinness behind it, Guinness 0.0 is positioned to make a notable impact in the non-alcoholic beverage market both domestically and in terms of exports from Ireland.

Earlier this year, Diageo made the decision to delist its shares from the Euronext Paris and Euronext Dublin exchanges. The delisting process was completed at the end of May. Diageo stated that this decision was the result of a thorough evaluation of various factors, including trading volumes, costs, and administrative obligations associated with the listings.

Delisting from the exchanges allows Diageo to streamline its operations and focus on its primary listing on the London Stock Exchange, where the majority of its trading volume occurs. By reducing the administrative burden and associated costs of maintaining additional listings, Diageo can allocate resources more efficiently and concentrate on its core business activities.

It’s important to note that the delisting from these exchanges does not impact the trading of Diageo shares on the London Stock Exchange, where the company’s primary listing remains. Diageo’s shares continue to be traded on the London Stock Exchange, providing investors with access to the company’s stock and liquidity.

This strategic decision to delist from the Euronext Paris and Euronext Dublin exchanges aligns with Diageo’s goal of optimizing its operations and resources to better serve its shareholders and stakeholders.

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