Diageo GB chief: ‘Guin-fluencers’ and the Six Nations will give us a big boost
A combination of more diverse audiences, the Six Nations, and socia media are keeping Diageo's home market in fine fettle
Diageo’s boss in Great Britain remains bullish about the firm’s performance in its home market thanks to an increasingly diverse audience for its hero stout, Guinness, and the rise of social media buzz around the perfect pint.
Speaking to City A.M, Nuno Teles, who acts as the spirit giant’s UK managing director, said in the last half of the year the amount of women drinking the Irish stout grew by 24 per cent.
In the past, the alcoholic drink has traditionally been associated with men, but a number of female celebrities including Kim Kardashian have been pictured posing with a pint of plain over the last year.
Teles also said Guinness’s sponsorship of the Women’s Six Nations Rugby tour, which saw England beat France last April, has convinced women to try out the drink.
“It’s great to see, as we expand, to not only see women but also younger adults drinking Guinness. I think all that will unlock future growth in a sustainable way for Guinness.”
On Friday the men’s tournament will kick off with France taking on Ireland in the Stade de France, in Paris.
Netflix’s new ‘Full Contact’ series following last year’s tournament will also aim to attract a new fan base.
Excited Irish fans knocking back their national drink will serve as a welcome boost to Diageo, who this morning revealed a 11.1 per cent decline in operating profits due to cash strapped customers steering clear of top shelf liquor.
But despite seeing growth slip in every region, Diageo said net sales grew nine per cent in Britain and five per cent in Russia, due to demand for Guinness.
Its new alcohol free version ‘Guinness 0.0’ also launched in grocery stores last year and now has 25 per cent of the market share in the alcohol free category.
“If you go to Twickenham on a game day it’s 300,000 thousand pints [being bought]. You see a Guinness 0.0 being drunk second, so that people can moderate their alcohol consumption,” he said.
Teles said growing adoration for the drink can also be chalked up to “Guin-fluencers” who are taking to social media to post pictures of the so-called ‘perfect pint’ or critiquing pubs for their shoddy pour.
One account on X,named @BeautifulPints, has over 57.4k followers. It’s sister account @sh*tlondonguinness has a fanbase of 86.k people.
“It takes 19.5 seconds to pull the perfect pint,” Teles said.. “We are very dedicated to always delivering [this].”
The wider Diageo business has had a miserable six months, with slipping sales in Latin America dragging the firm’s overall revenues and profits south.
The FTSE 100 firm told the London market this morning operating profit declined 11.1 per cent to $3.3bn (£2.6bn) across the first half of the year, much of which driven by a particularly grim performance in Latin America.
Net sales sank by 18 per cent across the region, following a warning last year that this market was steering clear of top-shelf liquor.
The firm expects to stem losses in Latin America by reducing inventory.
“As a result, we expect organic net sales in LAC to decline between the range of -10% to -20% in the second half of fiscal 24, compared to the second half of fiscal 23. However, we expect to close fiscal 24 with a more appropriate level of inventory for the current consumer environment,” the firm said.
Volumes slipped across every region, though net sales did reach positive growth territory in APAC and Europe.
Diageo, which also makes Smirnoff vodka and Captain Morgan rum, has around £29bn wiped off its market cap value over the past year amid a slowdown in trade.
