Drinks giant Diageo will invest €30 million at its St. James's Gate brewery to ramp up production of non-alcoholic Guinness 0.0 due to surging demand.

In April, the company said production had increased 50% year-on-year as the market continues to trend toward non-alcoholic drinks.

As a result of the investment, St James's Gate will double its Guinness 0.0 production capacity from 2023 levels to the equivalent of 176 million pints per year, and non-alcoholic Guinness will account for 14% of production at the facility.

The latest investment will bring the total invested by Diageo in the production of Guinness 0.0 to €60 million.

“Guinness has a long history of innovation and delivering products of the highest quality, and we continue to do that through Guinness 0.0 – producing the same great taste, quality and premium experience that people have come to expect from a brand like Guinness, just without the alcohol," said Aidan Crowe, operations director for beer at Diageo Ireland.

"St James’s Gate is the global hub of Guinness 0.0 production for markets around the world, and this investment goes a long way in supporting that work and continues the legacy of true innovation here in Dublin 8.”

Responding to the announcement, Tánaiste Micheál Martin said: “The significant new investment announced by Diageo today is a welcome boost to the area surrounding St. James’s Gate, and it follows increased demand for non-alcoholic beer, as more and more consumers move towards moderation."

Guinness announced plans to increase production of Guinness 0.0 by 300% last July following the opening of a €25 million production facility at St James's Gate.

Guinness 0.0 was launched in 2021, and the firm previously forecast that it would account for 10% of all Guinness sales in Ireland in the coming years.

*This article was originally published on BusinessPlus.ie.