From Investing.com: 2024-11-18 02:50:38

Diageo is relying on Guinness to drive growth, but price hikes are turning off UK customers. Rivals like Heineken’s Murphy’s are seizing the opportunity. Despite frustrations, Guinness remains the most popular stout in Britain, with sales growing 12% in 2023. Diageo charges more for Guinness 0.0, citing higher production costs.

Guinness sales have grown double digits annually since 2021. Diageo aims to expand Guinness 0.0 and sponsor the English Premier League. The non-alcoholic stout has doubled sales in Europe. Despite high margins for Murphy’s, some publicans are pushing back against Diageo’s price hikes.

Heineken and AB InBev are increasing competition in the stout market. Heineken’s Murphy’s is gaining traction, while AB InBev’s Camden Stout is now the second-largest brand in British venues. Guinness 0.0 is among the top-selling non-alcoholic beers in British venues. Alternative brands are likely to gain popularity among younger and female drinkers.



Read more at Investing.com: Analysis-Price hikes offer chance for Guinness rivals as Diageo pushes zero alcohol brew By Reuters