The Business of Booze: Can “Zero” Be Diageo's Comeback Story?

Episode 40: The Business of Booze: Can “Zero” Be Diageo's Comeback Story? 

Alcohol has long been seen as a reliable, cash-generative industry. But in this episode of Stocks Neat, Steve Johnson and Gareth Brown explore why that assumption is being challenged and whether the sector can adapt.

Drawing on Gareth’s recent meetings in London, including discussions with global drinks giant Diageo (LON:DGE), the conversation digs into falling consumption and generational shifts in drinking habits. Added to this is the growing impact of substitutes like cannabis. The hosts unpack why beer has been hit harder than spirits, how premiumisation once masked declining volumes, and why the economics of alcohol brands are changing fast.

A key focus of the episode is the surprising rise of alcohol-free products, particularly Guinness Zero. Gareth shares observations from UK pubs where Guinness appears to be everywhere and explains why zero-alcohol beer could help brands defend both relevance and profitability in a more health-conscious world. The episode even features a blind taste test to see just how close Guinness Zero comes to the original.

“You are now entering soft drink economics with alcohol prices.” - Gareth Brown

Topics covered include:

• Global alcohol consumption trends and post-COVID demand
• Why younger generations are drinking less, or not at all
• Cannabis as a substitute and its impact on beer
• Beer vs wine economics and capital returns
• The rise of alcohol-free beer and Guinness Zero
• What all this means for investors