The founder and chairman of JD Wetherspoon has issued a stark warning to Diageo amid widespread Guinness shortages affecting pub chains across Britain. Sir Tim Martin, who oversees nearly 800 establishments in the UK and Ireland, expressed his intention to have “a stern word” with the beverage giant as supplies dwindle during the crucial Christmas period.
Martin, representing what he claims to be the world’s largest retailer of draught Guinness at 25 million pints annually, emphasised the unprecedented nature of the situation. “I think someone at Guinness has made a mistake… since we’ve worked with them for so long, we intend to forgive them. But they better get brewing,” he stated.
The supply crisis has prompted Diageo to implement purchasing restrictions for pubs throughout England, Wales, and Scotland, citing “exceptional consumer demand.” Notably, these limitations do not extend to establishments in Northern Ireland and the Republic of Ireland, raising questions about supply chain management.
The situation has drawn criticism from other major pub operators. Admiral Taverns’ Chief Executive Chris Jowsey reported receiving no Guinness deliveries since last Wednesday, with some of their 1,600 pubs completely depleted of stock. Similarly, Amber Taverns revealed that approximately 10% of their 180 establishments have exhausted their Guinness supplies.
The shortage comes amid a remarkable surge in Guinness’s popularity over the past 18 months, driven by younger consumers and women. The trend has been amplified by social media influence and the successful launch of Guinness 0.0, the brand’s alcohol-free variant. Diageo’s most recent trading update highlighted an 18% rise in global net beer sales, predominantly attributed to Guinness, despite an overall group sales decline of 1.4%.
While some establishments have begun rationing their remaining stock, others are turning to alternative stouts to meet customer demand. Diageo maintains they are “efficiently allocating stock to all direct customers on a weekly basis,” though the effectiveness of this strategy remains under scrutiny as the festive season approaches.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.