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Ireland: Diageo invests US$27m in tripling production of Guinness 0.0 in Dublin

Diageo’s Guinness has invested €25 million (US$27.25m) in a new facility at St. James’s Gate in Dublin, Ireland, to triple production of its zero-alcohol brand in response to a growing consumer taste for non-alcoholic drinks.

The production facility includes six processing vessels with a total capacity of 500,000 hectolitres–almost 90m pints–and a two-story building where the alcohol is removed through a cold filtration system to create Guinness 0.0.

All global production of Guinness 0.0 takes place at St. James’s Gate with the main export markets including the UK, Europe, the US, Canada, the Middle East, and South Korea.

Production of Guinness 0.0 is expected to increase by almost 300% with the new facility and will help to meet “growing domestic and global demand” for the non-alcoholic stout.

The investment is described as a major expansion in production capacity for the drink, which was launched in 2021, and the firm forecasts it is on course to account for 10 percent of all Guinness sales on the island of Ireland in the coming years.

Managing director of Diageo Ireland, Barry O’Sullivan, said “Guinness 0.0 is now the number one selling non-alcoholic beer in a four-pack format in both Ireland and Great Britain.”

“This expansion in production capacity at St. James’s Gate is a testament to the quality of Guinness 0.0 and the growth of the non-alcoholic category, as consumers look for more choices on different occasions. We expect the growth of Guinness 0.0 to be another export success story for Ireland.”

In 2022, Forbes reports that sales of no- and low-alcohol beverages grew by more than 7% in volume across 10 key global markets, surpassing $11 billion in market value. This is up from $8 billion shown in 2018, according to IWSR Drinks Market Analysis.

“The dynamic no/low-alcohol category presents opportunities for incremental sales growth as consumers are recruited from drinks categories such as soft drinks and water” commented Susie Goldspink, Head of No- and Low-Alcohol, IWSR Drinks Market Analysis. “Brand owners have an opportunity to recruit non-drinkers of alcohol.”

Statista projects revenue in the Non-Alcoholic Drinks market where Guinness 0.0 belongs to the amount to US$1.45tn in 2023 and is expected to grow annually by 4.56% (CAGR 2023-2027).

Publican Oliver Barden of O’Donoghue’s, a historical drinking establishment, explained that Guinness 0.0 is one of the most popular non-alcoholic beers in this pub.

“It’s a great tasting alternative for those that want to experience the atmosphere in the pub without any alcohol. I imagine this demand will continue to grow as the availability and quality of non-alcoholic products becomes more widespread,” he added.

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