Food and Beverage
Guinness Touts First New Stout In US In Decades
The anniversary comes in a rocky year for Diageo. As the global recession deepens and consumer confidence remains low, the London-based company has been cutting costs and shedding jobs to protect its profits.
In January, it said it may change or abandon $1.1 billion plans to reform production in Ireland and open a new state-of-the-art brewery. Guinness accounts for about 70 percent of stout volume in the U.S., dominating a category that makes up less than 1 percent of total U.S. beer volume, according to research firm Nielsen Co. Guinness sales volume slipped about 3.9 percent in the U.S. in the 52-week period that ended March 7, according to Nielsen, while dollar sales fell 1.7 percent to $127.2 million in food, drug, liquor and convenience stores. Nick Lake, vice president of beverage alcohol for Nielsen, said the introduction of the new beer "has the making of a very successful initiative," citing the brand's heritage and a trend of U.S. consumers increasingly wanting fuller, tastier beers like stouts. Lake also said consumers want more variety, and brewers are providing more seasonal and limited-release beers in response. The category was up 27.6 percent in sales volume in the latest 52-week period.TheStreet Premium Services
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