LONDON — Guinness is pushing ahead with a bold new venture in London’s Covent Garden, even as parent company DIAGEO unveils a sweeping $500 million cost-saving strategy and plans to offload major assets by 2028.
It’s been a rough ride for Diageo. The global drinks powerhouse — home to Johnnie Walker, Tanqueray, and Guinness — is grappling with declining sales, mounting debt, and growing investor unease. In response, the company is initiating a major financial reset.
Chief Financial Officer Nik Jhangiani confirmed the group’s intent to slash spending across advertising, trade investments, and supply chains. The goal? To generate $3 billion in annual free cash flow by 2026.
Yet, amid the shake-up, one brand remains untouchable. “Nothing has changed,” said CEO Debra Crew, emphasising that Guinness remains firmly at the heart of Diageo’s portfolio.
This comes as little surprise. Guinness continues to perform strongly, particularly across its traditional strongholds in Britain and Ireland.
In a bold move, Diageo is investing £73 million into a new Guinness site at Old Brewers’ Yard in Covent Garden. Set to open by the end of 2025, the development will mark the return of brewing to the area for the first time in over a century, not seen since 1905.
The flagship location will be home to the new Open Gate Brewery, joining other outposts in Dublin, Baltimore, and Chicago.
Although traditional Guinness won’t be produced at the London site — all European production remains in Dublin — the microbrewery will craft more than a dozen limited-edition beers, including low-alcohol varieties under the direction of head brewer Hollie Stephenson.
Visitors can expect:
- A 54,000-square-foot space
- Multiple dining venues
- A projected 500,000 annual visitors
- 250 new jobs created
The site will also host the southern British arm of Diageo’s Learning for Life programme, providing hospitality training for over 100 bartenders each year.
Despite supply chain hiccups last Christmas that left some London pubs short of Guinness, the brand’s popularity hasn’t waned. It’s currently the second most-pulled pint in the UK, just behind San Miguel.
In fact, it’s estimated that one in every ten pints served in the capital is Guinness. Visitors to the new Guinness site might also want to explore some of the best pubs in London to enjoy the capital’s thriving beer scene.
