On-trade wholesalers that supply pubs and bars look set to be facing supply issues relating to Guinness over the Christmas period, with distributor Diageo confirming that it will be reducing supply due to “exceptional demand”.
In a letter sent to a brewing company seen by Better Wholesaling, Diageo confirms that this is a market wide issue and that every other route-to-market will be in the same position. The company states it will be temporarily de-listing Guinness 30L kegs and will move the volume into the 50L keg.
Read more: Diageo to stop supply to wholesalers under strict new criteria
This restriction will not be applied to pubs in Northern Ireland and the Republic of Ireland, and Diageo will be reviewing the allocation process after the 20th December.
The letter reads: “Due to exceptional consumer demand, we must take proactive allocation measures to manage the supply of Guinness Draught in Keg during December. As of this week, all customer orders will be constrained on a weekly basis. This will ensure distribution of stock within the network, maintain normal operations, and allow our route-to-market partners the ability to manage demand efficiently within their own network”
At the start of the year, Diageo cease supply to convenience wholesalers unable to meet strict new ordering criteria, including an annual minimum order value of £2m. The alcohol firm sent communication to wholesalers, seen by our sister title Better Retailing, informing them the restrictions would be put into place from 1 April.
