Diageo will spend “just under” US$1bn on the Guinness beer mark over the next three years to double production volumes and boost global sales.
Between the company’s fiscal 2026 and 2029, Diageo plans to invest in brewing capex, including “around” $670m in “supply infrastructure”. Remaining funds will go towards “packaging capabilities and additional zero processing capability”, as well as “in-market equipment such as taps and kegs” and “brand growth initiatives”.
In fiscal 2028, the drinks major is planning an unspecified cash injection into expanding non-alcoholic beer capacity at the Little Connell brewery in County Kildare, Ireland. This “second phase” of expansion at the site follows the opening of the brewery in April 2026, which increased capacity for both Guinness Draft and Guinness Zero by around 25%.
CEO Dave Lewis described Guinness as one of two “strategic battlegrounds” for Diageo, the other being RTDs.
“Given Guinness’s growth potential, its profitability and its very high ROIC (return on invested capital), we believe this is a highly attractive deployment of capital,” Diageo’s global category director for beer, Gráinne Wafer, told investors during the company’s ‘capital markets day’ today (6 August).
Diageo highlighted North America as a market of focus for Guinness brand growth, as well as “growing premium beer markets” including India and Brazil. But Wafer caveated: “That growth is only possible if we have the supply capacity.”
“North America still remains largely untapped,” she said. “So, as this production capacity increases, we’re going to extend distribution across more outlets, more channels and more markets.”
Briefly discussing innovation plans for the brand, Diageo also revealed the ‘Guinness Nitro Surge Tap’ (above). The consumer gadget is set to launch in Ireland, the UK and US next year.
“In other markets, our priority remains extending distribution of Guinness Zero, extending distribution of Nitro Surge, and extending, of course, Microdraft,” Wafer said.
“This represents another example of how Guinness’s innovation is staying true to everything that makes the Guinness brand and product so distinctive … but also continuing to drive incremental locations as well.”
