Dividends and Guinness taps running dry at British pubs

Every company does social media as that how to reach an audience. Every company has the same idea that reaching out to people will drive demand of their products and services. Given the spending on social media, every company hopes they are successful, but what happens when they are successful? Companies want demand, but not exceptional demand.

In an article by Amelia Nierenberg of the New York Times News Service, one of the oldest breweries in the world Guinness is having a wonderful problem. There is too much demand for their dark beer. Guinness was seen as an old-timer’s beer, but it has been a Gen Z darling thanks to a savvy marketing, celebrity endorsements and a viral drinking challenge.

The viral drinking challenge is called split the G, this entails drinking enough in one chug to leave the foam scything the first letter of the branded glasses.

Guinness was the top beer in Britain by volume sales in the year to November, according to CGA by NIQ hospitality data consultancy. From July to October, sales were up 21% while beer sales nationally were flat.

If you went into a British pub and there was no Guinness you could try some Irish alternatives, but for Irish pubs or themed pubs not having Guinness means it is not an authentic Irish pub.

Linking to dividend paying stocks, every month and maybe day there are marketing campaigns to encourage people to spend money. It is wonderful if the campaign works, however if it works exceptionally well and there is a shortage of products, people look for alternatives. Once they have tried the alternatives, they may or may not go back. Every day as an investor you read about software programs using AI to help manage inventory and the supply system, there is limited reasons for shortages.

There are more questions than answers, till the next time – to raising questions.

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