As Ireland Staggers, Guinness Reels

The Wall Street Journal
February 25, 2011
By Paul Sonne and Guy Chazen

The recent economic downturn in Ireland is hurting its national drink, Guinness, just as much as it is hurting the banks.  Consumption has been fallen in recent years as many decide to drink at home, instead of in pubs because it is cheaper.  Also, alcohol consumption in Ireland in general has fell.  Nearly 1,500 Irish pubs have close in the last five years.  The closures have hurt Guinness especially because the drink is generally preferred on draft rather than in a can or bottle.  Ireland accounts for 20% of Guinness's sales.  One out of every pint sold in Ireland is Guinness, so the future of the company is still very bright.  But for now, there is little reason to believe that confidence  will grow and spending on premium brews will increase soon.