CNN

British pubs are worried they’ll run out of Guinness

Dec 15, 2024, 1:09 PM

A pint of Guinness is poured at a pub in central London in November 2023. (Daniel Leal/AFP/Getty Im...

A pint of Guinness is poured at a pub in central London in November 2023. (Daniel Leal/AFP/Getty Images via CNN Newsource)

(Daniel Leal/AFP/Getty Images via CNN Newsource)

(CNN)At the Sheephaven Bay pub in London, tucked just behind Camden High Street, Guinness accounts for more than 50% of draft beer sales. Owner Pat Logue told CNN that this year he’s already sold double the amount of Guinness that he did two years ago.

The Irish stout, known for its distinctive warm brown color, creamy foam head, and unique method of being poured (a proper pint of Guinness takes 119.5 seconds to pour), has long been known as the drink of choice for rugby lads and men at the pub.

Yet in the past two years, Guinness has skyrocketed in popularity, especially among young people and women.

From July to October, sales of beer decreased by 0.5% in the UK, according to CGA, a data insights firm for food and drink businesses. Yet across the same period, sales of beer increased by 23.2% for Diageo, which owns the Guinness brand. Specifically, sales of Guinness in kegs grew by 20.9%.

By the end of October, Guinness was the top-selling beer in the UK by volume across 2024, according to Nielsen data that was shared with CNN.

Social media influencers and marketing campaigns have helped to dispel notions that Guinness is a drink for older men. Logue credited influencers on TikTok for making the beer trendy and showcasing different pubs through video reviews that rank and compare the best-poured pints around London.

He said it’s no surprise to see a group of six young people — three guys and three girls — walk up to the bar at the Sheephaven Bay and order a round of Guinness — something that he said was unheard of years ago.

“It used to be portrayed as an older man’s drink, but now it’s for everybody,” Logue said. “Now it’s a cool drink.”

With the sudden increase in demand, Diageo has told some pub owners that it would set allocation limits on Guinness to ensure distribution can last through the holiday season.

“Over the past month we have seen exceptional consumer demand for Guinness in (Great Britain),” a Diageo spokesperson said in a statement. “We have maximized supply and we are working proactively with our customers to manage the distribution to trade as efficiently as possible.”

The allocation limits have not affected all pubs. But pub owners told CNN that they are weary about having enough supply to meet demand, especially during the holiday season, which is often the busiest time of the year and crucial for weekly profit margins.

Logue, who goes through 40 to 50 kegs of Guinness in a week, secured an order of 60 kegs on Friday. He said he was nervous up until the delivery arrived, and he’s relieved he has enough stocked up for this week.

A bright spot for Diageo

While growth has slowed for distillers and brewers in the past year, Diageo’s Guinness has gone against the trend, noted Verushka Shetty, an equity analyst at Morningstar.

In March, Diageo rolled out a popular marketing campaign with actor Jason Momoa, which Shetty said helped contribute to the brand’s growth.

“The brand (is) rising in popularity, especially among women and Gen Z,” she said.

On Diageo’s fiscal year-end earnings call in July, CEO Debra Crew said Guinness had a 15% increase in global net sales across fiscal year 2024.

Crew said that Diageo “recruited more Guinness consumers” through marketing campaigns like the one with Momoa and by partnering with influencers to “co-create content and shape the brand.”

In Great Britain, Guinness consumption among women increased by 27% from fiscal years 2022 to 2023, according to Crew.

In addition to working with content creators, Diageo’s Crew said the company expects its business partnership with sporting events like the Premier League and Six Nations Rugby to continue to contribute to demand.

At The Auld Shillelagh in London’s Stoke Newington neighborhood, which has been a “Guinness house” since 1991, deliveries of kegs of the Irish stout arrive two to three times a week. Aonghus Leydon, co-owner of the pub alongside his brother, told CNN that while they’ve always been known for their Guinness, he has noticed an uptick in popularity in recent years.

“Guinness has always been a pretty high-volume product for us. But yes, I would say in the last couple of years, Guinness sales are up,” he said. The Irish stout currently accounts for up to 70% of the pub’s sales.

Leydon, who is from Roscommon, Ireland, said that compared to 10 years ago, the number of young people drinking Guinness has noticeably increased.

“Our clientele are mostly early 20s to early 30s and the majority would be Guinness drinkers,” Leydon said. “It is pretty mixed gender-wise.”

While drinking at a pub in London’s Shoreditch neighborhood, Harry Evans, 26, told CNN that he loves Guinness because it’s smooth, drinkable and “less gassy” than other beer. “I drink it all year round,” he said.

Leydon said that in his 37 years in the trade, he’s never experienced any difficulty with Guinness supply. This explains why some pub owners are worried that there might be allocation limits.

Leydon has not been notified yet about any allocation limits, but he said they have been on edge about receiving deliveries.

The Guinness craze isn’t just in Great Britain

While Diageo cited “exceptional” demand in Great Britain, the stout has also grown in popularity in the US. Guinness was the top-imported beer in the US across the past 12 months ending in October, according to Nielsen.

In Europe, Guinness 0.0, a nonalcoholic version of stout, saw net sales double in fiscal year 2024, according to Diageo.

At The Dead Rabbit in Manhattan, co-founder and managing partner Jack McGarry said he’d sold as much Guinness in the first 10 months of 2024 as he had sold in the entirety of 2023.

McGarry, who is from Belfast, Northern Ireland, said he thinks Irish culture is having a moment in the public eye, which bodes well for Guinness.

Additionally, he said he thinks young people are becoming more aware that Guinness is a light, low-calorie beer. A 20-ounce pint of Guinness has about 210 calories, comparable to a lager like Stella Artois which has about 224 calories in a 20-ounce pint. And Guinness is only 4.2% ABV, comparable to a light beer like Michelob Ultra.

“All of our bars are outselling what we did last year,” McGarry said. The Dead Rabbit also has an outpost in Austin, Texas.

Victor Boyd, the owner of Iona Bar in Williamsburg, Brooklyn, is originally from Dublin. His bar has been pouring Guinness for 25 years, he said, and he’s also noticed the recent surge in popularity.

It’s not just among young people, though, according to Boyd. He said reviews on social media about the best-poured pints of Guinness in New York have helped boost the profile of his bar for many people.

“Others have discovered the joys of a stout that’s lower alcohol and calories than many other beers,” Boyd said.

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British pubs are worried they’ll run out of Guinness