GUINNESS
once tried to convince the world that it was
“good for you” and that it “gives you strength”,
but it seems these qualities are not enough for
Ireland’s discerning young drinkers today.
With wine and white spirits sales on the
march, the black stuff has been battling to hold
onto its share of a falling beer market.
In a bid to buck
declining sales volumes, brand owners Diageo
this month launched Guinness Brew 39, a smoother
version of the bitter stout, as part of the
Guinness Brewhouse series. The brewer is
planning to launch a different potion every six
months.
“People will always ask the question: ‘Should
the natural heritage of the black stuff be
messed with?’” said Gary Power of the marketing
agency Saor Communications. “But the big stout
brewers like Guinness will also have noticed the
success of the likes of the lighter Porterhouse
stouts. That’s given people a new taste for
experimentation,” he said.
Guinness has tried to introduce new beers
before and failed to excite much interest. So
why does it think it will be successful this
time? Guinness XXX Extra Strong, Guinness Gold
and Breo all faltered within a short time of
being launched.
Its “fast pour” experiment, designed to cut
the settling time for a pint, was abandoned two
years ago, and the brand has crept back with new
campaigns that focus on the 119 seconds it takes
to pour the “perfect pint”. Guinness Light was
launched in a blaze of publicity in 1979 with
the slogan: “They said it couldn’t be done.” Two
years later it was withdrawn.
“The Guinness drinker base is older, it
always has been,” said Paul Kelly, the marketing
director of Diageo Ireland. “It’s a drink that
people tend to graduate onto. Our target buyers
with this (Guinness 39) are people coming into
their mid-twenties.”
The new brews are being promoted as being
more “drinkable” in a push to attract younger
drinkers. There will be a new brew each month so
Diageo can assess just what taste this market
prefers.
“The Brewhouse series is going to be a
serious part of our marketing strategy going
forward. As to how long it will last, consumers
will be the judge of that,” said Kelly.
Sales of Guinness in Ireland have dropped
about 15% in volume since 2000, mainly due to
its reliance on the pub trade, which accounts
for almost 90% of all its Irish sales.
In the first six months of this year,
Diageo’s sales in Irish pubs and restaurants
fell 5% as the sector struggles to shake off the
after-effects of the smoking ban.
The €3.24 billion beer market overall is in
serious decline, although Guinness managed to
increase its share by 1% last year after two
straight years of decline.
Some foreign analysts have been sceptical
about the new move. Gerard Rijk, a beverage
analyst at ING Financial Markets in Amsterdam,
told one news agency: “The answer isn’t to mess
around with the product, but rather to invest in
marketing the traditional heritage of the
product.”
Guinness 39 is being test- marketed in about
300 key pubs in the greater Dublin area, with
plans to roll out the next Brewhouse product
nationwide next March.
Perhaps mindful of its past failures,
Guinness executives are being a little more
cautious this time around, spending just €1.2m
marketing Guinness 39 through branded beer mats
and glasses and a small amount of radio and
press advertising. This is just a fraction of
its annual global €230m marketing spend on the
mother brand.