Episode 40: The Business of Booze: Can “Zero” Be Diageo's Comeback Story?

Alcohol has long been seen as a reliable, cash-generative industry. But in this episode of Stocks Neat, Steve Johnson and Gareth Brown explore why that assumption is being challenged and whether the sector can adapt.

Drawing on Gareth’s recent meetings in London, including discussions with global drinks giant Diageo (LON:DGE), the conversation digs into falling consumption and generational shifts in drinking habits. Added to this is the growing impact of substitutes like cannabis. The hosts unpack why beer has been hit harder than spirits, how premiumisation once masked declining volumes, and why the economics of alcohol brands are changing fast.

A key focus of the episode is the surprising rise of alcohol-free products, particularly Guinness Zero. Gareth shares observations from UK pubs where Guinness appears to be everywhere and explains why zero-alcohol beer could help brands defend both relevance and profitability in a more health-conscious world. The episode even features a blind taste test to see just how close Guinness Zero comes to the original.

“You are now entering soft drink economics with alcohol prices.” - Gareth Brown

Topics covered include:

• Global alcohol consumption trends and post-COVID demand
• Why younger generations are drinking less, or not at all
• Cannabis as a substitute and its impact on beer
• Beer vs wine economics and capital returns
• The rise of alcohol-free beer and Guinness Zero
• What all this means for investors
  
  

High Performance In and Out of the Pool

From Olympic gold to the ASX 200, Generation Development CEO Grant Hackett joins Steve Johnson for a special episode of Stocks Neat.

They discuss Grant’s journey from elite sport to business leadership, the importance of purpose beyond success, and how lessons from swimming translate into building a $3 billion company.

As Grant shares: “You’re retired to something, not from something.”

The conversation also dives into Generation Development’s core businesses, from investment bonds and annuities to Lonsec and the rise of managed accounts, and how the company is navigating growth, regulation, and leadership under pressure.

Make sure to stick around to the end of the podcast, for a candid talk between Steve and Grant.

In the latest Stocks Neat episode, Steve Johnson, Gareth Brown and Isabella Foley dive into Japan’s corporate transformation — from shareholder returns and buybacks to digitisation and the demographic shifts reshaping opportunities.

“It’s been like a snowball that’s been pushing across a flat surface for a long period of time. It’s finally started to gather some momentum.” – Steve Johnson

With Japan now a significant part of the international portfolio, the team shares where they’re finding value and why some of the most interesting ideas are hiding in plain sight.