Guinness to open new Covent Garden location while cutting costs elsewhere
Amidst these measures, the Guinness brand is highlighted as a key element for future growth by their owner. Diageo, the global drinks giant behind Johnnie Walker, Tanqueray and Guinness, is operating in difficult times for the global drinks industry.
With falling sales, investor anxiety, and mounting debt, the company is launching a financial reset. According to CFO Nik Jhangiani, the savings will come from streamlining trade investments, advertising, and supply chains, with an eye toward achieving $3 billion in annual free cash flow by 2026.
Despite plans to offload some significant assets, Guinness is notably not on the chopping block. CEO Debra Crew reaffirmed that 'nothing has changed' regarding the status of the stout powerhouse—Guinness remains central to Diageo's portfolio.
This decision reflects Guinness's continued commercial strength, especially in markets like Britain and Ireland.
That expansion is taking physical shape in the form of a £73 million investment into Guinness at Old Brewer's Yard, a massive brewery and visitor experience slated to open in London's Covent Garden by the end of 2025.
The project, originally delayed by the collapse of the lead contractor, marks the return of brewing to the area for the first time since 1905.
The new Open Gate Brewery in London will join sister sites in Dublin, Baltimore, and Chicago. It's expected to attract up to half a million visitors annually and create 250 jobs across a 54,000-square-foot site.
While traditional Guinness won't be brewed there (all European Guinness continues to be produced in Dublin), the microbrewery will craft more than a dozen limited-edition beers, including low-alcohol options under head brewer Hollie Stephenson.
Beyond beer, it will feature multiple dining options and serve as the southern British base for Diageo's Learning for Life hospitality training programme, teaching over 100 bartenders each year.
Despite supply chain issues that caused temporary shortages in London pubs last Christmas, Guinness remains one of the most in-demand beers in the UK, currently number two, just behind San Miguel.
Current estimates suggest that one in every ten pints pulled in London is for Guinness.
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