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Food & drink

Diageo flat as Guinness rationing comes to a head

Pubs have started to ration Guinness after panic buying exacerbated what was already heading to a tight supply situation over Christmas.

Reports started circulating in early December that Guinness brewer Diageo PLC (LSE:DGE) was considering managing supplies in the key holiday period after a recent spike in demand.

One pub in the London media district of Clerkenwell told the Times at the weekend that even with rationing, which was introduced last week, it still ran out.

Customers at the Old Ivy received a card entitling them to a pint of Guinness if they bought two other drinks first.

Even so, landlady Katie Davidson told the paper that the pub had only received four barrels, almost half of what it normally gets in the Christmas party season, and had run out by 10pm on Friday.

The rise in ‘Guinnfluencers’ has boosted the drink’s popularity among women and young people, The Times reported.

At the start of the month, Guinness said: "Over the past month we have seen exceptional consumer demand for Guinness in Great Britain.

“We have maximised supply and we are working proactively with our customers to manage the distribution to trade as efficiently as possible.”

Shares in Diageo dropped by 1.5% to 5,579p.

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