Diageo Bounces Back with Craft Beer Entry

Craft beers and spirits have been on the rise for years and there seems to be no stopping them. This fact was acknowledged by spirits giant Diageo, the company behind timeless names like Johnny Walker, Smirnoff, and Captain Morgan. After lackluster global sales, one of their brands seems to hold potential, though with a little rebranding here and there: Guinness, the globally recognized Irish stout.

Fact: Guinness has both the heritage and history in the world of beer. However, craft beers, or beers produced by microbreweries and which are independently owned, have piqued the interest and taste buds of millions of people in North America. Consumers are also obviously willing to pay more for complex beers that steer clear of traditional processes. To roll with this, The Brewers Project at St. James's Gate campaign was launched.

Essentially, the project is a rebranding to make Guinness into a "craft beer". Diageo did this by introducing two new porters and a golden ale in the UK market which is fertile ground for craft breweries to make a mark. North America also saw the introduction of a Guinness Blonde American Lager.

The Brewers Association, a non-profit trade association for American microbreweries, showed an increase in volume of 16% in the first half of this year alone. That translates to 12.2 million barrels of beer, a significant increase from 10.6 million barrels from the previous year. The 3,739 breweries now present in the US have been the driving force behind the growth. This development has also directly contributed to 115,000 jobs. This is a good sign for the economy and the passionate individuals who continue to drive innovation in craft beers.

Bart Watson, chief economist at Brewers Association, shares that, "More and more Americans are discovering the joys of enjoying fresh beer produced by their neighborhood brewery. By supporting local, small and independent craft breweries, beer lovers are gradually returning the United States to the system of localized beer production that existed for much of our nation's history."

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