Guinness' crazy plan to reinvent itself is actually working
REUTERS/Jonathan Ernst
The iconic Irish stout has an association with history and heritage, but Diageo is trying to reinvent it as "innovative" - and the plan is working.
Here's Diageo:
Innovation remained a key performance driver with net sales up 30% [in this category], driven by successes such as 'The Brewers Project' which helped put Guinness back in growth in both Great Britain and Ireland.
"The Brewers Project at St James's Gate" is a branding and marketing campaign tied to the launch of new Guinness beers, all trying to make the Dublin brewery look like a "craft" beer maker of the type springing up across Britain right now.
Last year Guinness brought out its first new drinks in years in the UK, launching two porters and, most incredibly, a golden ale. Their success helped Diageo's beer sales rise 2% in Britain.
In North America too Guinness sales were up thanks to the launch of a Guinness branded Blonde American Lager.
All of this is in response to the rising tide of "craft" beer that's gaining in popularity across North America and the UK. Consumers are willing to spend more on more adventurous and complex styles of beer, but are less interested in "traditional" drinks.
While Diageo will be pleased with Guinness's performance in the west, sales declines in Africa and Asia mean globally sales fell by 2%.
That pretty much sums up performance across the whole company. Sales of most spirits are falling, with tequila and North American whiskey the only big bright spots, as the table below shows:
CEO Ivan Menezes says in Thursday's results statement that the performance "reflects the challenges we have seen on top line growth" but says he's optimistic about the year ahead.
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market