Diageo plans to double its €200 million Kildare brewery’s capacity to 4.5 million hectolitres, with a planning application set for November 2025. Construction of the Littleconnell facility began in June 2024, with first brews expected in early 2026. The expansion responds to surging demand for Guinness 0.0 and reinforces Diageo’s commitment to sustainable brewing with 100% renewable energy.
The brewery will produce traditional beers such as Rockshore, Harp, Hop House 13, Smithwick’s, and Kilkenny, alongside Guinness 0.0 for emerging markets. St James’s Gate in Dublin will remain the core production site for Guinness in established markets like Ireland, the UK, and the US. This expansion strengthens Diageo’s global supply chain flexibility.
Guinness 0.0 on-trade draught sales soared 161% between June 2022 and March 2025, according to Diageo. Supply shortages in the UK and Ireland last winter underscored the brand’s growing popularity.
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The no-alcohol beverage market is projected to grow at 7-8% annually through 2030, according to industry forecasts, driven by younger, health-conscious demographics embracing moderation. Diageo’s focus on Guinness 0.0 positions it to capture this expanding segment. The Kildare expansion enhances production capacity to meet rising global demand in emerging markets.
Sustainability is central to the project. Launched in 2022 as Ireland’s first carbon-neutral brewery, the facility’s renewable energy use is expected to cut 15,000 metric tons of carbon emissions annually, aligning with Diageo’s Spirit of Progress 2030 carbon-neutral goals. Its advanced technologies set a new standard for sustainable brewing.
Diageo’s digital innovations, including AI-driven FlavourPrint for personalized consumer experiences, complement the brewery expansion by enhancing market responsiveness. These efforts underscore Diageo’s strategy to lead in market trends and technological advancements. Challenges remain, including potential planning delays after a resolved 2023 legal challenge, economic fluctuations in emerging markets, and high initial costs of green technology. Despite these risks, Diageo’s Kildare expansion sets a new standard for no-alcohol and sustainable brewing, potentially redefining industry practices. Stakeholders should monitor its progress as a model for future growth.
