While global beer consumption continues to decline, the Irish stout is outperforming the broader category. This is thanks to younger drinkers, creative campaigns and major sporting events such as the British and Irish Lions tour. As alcohol trends shift, Diageo's iconic dark beer is gaining fresh relevance in Australia and other markets, with around two million pints sold during one rugby series alone.
In a country where beer consumption has been dropping for over 20 years, Guinness is managing to break away from the trend. Once mainly enjoyed on St Patrick's Day, it has become a year-round favourite, especially with Gen Z. Social media trends like "split the G" - where drinkers aim to position the foam line perfectly across the letter "G" in the logo - have helped transform the drink into a viral hit. At a time when beer sales in countries like Australia have hit their lowest levels in decades, Guinness is standing out.
An important part of the strategy has been increasing availability. Between June and August, Diageo installed 886 new Guinness taps in Australian venues, which works out to about ten new locations serving the drink each day. Retail growth has also been striking. One national alcohol retailer noted that sales of the 470ml can rose by 563%, with six-packs and cartons both increasing by more than 400%. Guinness is now more deeply embedded in regular pub culture and live events, which is clearly yielding results.
The brand’s success is also drawing attention from the entertainment industry. Streaming platform Netflix is investing in a new drama series about the Guinness family's origins, reflecting the growing cultural influence of the stout. Meanwhile, Guinness is seeing rising popularity in the Irish summer and recording strong growth in US bars, a notable achievement for a beer typically associated with colder climates and European drinkers.
While Diageo Australia reported a slight decline in revenue to $641.1 million from $680.7 million in the previous year, the company links this to accounting changes rather than actual consumer behaviour. Its local experts say drinkers across all age groups are choosing beverages more consciously, with premium options like Guinness standing out. Events and festivals are also boosting demand for Diageo's wider portfolio, including ready-to-drink cans, which are twice as popular in Australia as in the US.
However, growing inflation and high alcohol taxes are putting pressure on consumers. As much as 65% of the cost of a liquor bottle goes towards tax. While people are turning to events such as rugby games and concerts to enjoy their drinks, the rising price of everyday purchases is becoming a concern. Diageo has acknowledged this issue, even as it continues to grow market share and position premium brands like Guinness in more social settings.
