Diageo explores selling Guinness after a surge in demand, potentially leading to the Irish stout’s largest-ever deal.

Diageo, the FTSE 100-listed owner of Guinness, is reportedly considering an £8bn sale of the iconic brand, which has seen an explosion in popularity in recent years. The company is weighing whether to spin off the brand, retaining a stake, or sell it outright, with the deal potentially fetching over £8bn.

Guinness, founded in 1759 by Arthur Guinness, is a cherished national symbol in Ireland, and any sale would likely spark political sensitivity in Dublin, given its association with the country’s heritage and economy.

The push to sell comes after the brand has experienced a significant resurgence, especially among younger drinkers and women. Once stereotyped as a drink for rugby fans, Guinness is now enjoyed by a broader demographic. Trends like TikTok’s “splitting the G,” where drinkers attempt to separate the head of a pint through the Guinness logo, have contributed to the drink’s newfound appeal.

Guinness has even overtaken Carling as the best-selling beer in British pubs, and the brand’s non-alcoholic version, launched in 2021, has also gained traction. It now represents around 3% of Guinness’s global sales, with some executives speculating that it could eventually outpace the original brew.

The dramatic increase in demand led Diageo to implement rationing ahead of Christmas 2024, ensuring that the stout wouldn’t run out during the festive season. While some speculated that the move was a marketing tactic, Diageo has denied this, claiming it was necessary to meet overwhelming demand.

With Guinness now firmly entrenched in both the UK and global markets, Diageo’s potential sale of the brand would mark a significant shift for the company, which is known for its premium portfolio of alcohol brands.