Diageo PLC is pitching Guinness to younger drinkers across Africa in an attempt to revive sales of the Irish stout, which have stalled in the past year as the continent's economies have sputtered.
Starting Wednesday evening, Guinness hopes to "take Africa by storm" with a marketing campaign allying the black-colored beer with the "new, progressive spirit of Africa."
The move is part of a broader scramble by major brewers to expand in Africa by appealing to new consumers. There will be 65 million more legal drinkers in Africa by 2023, according to the African Development Bank.
Africa accounts for about 40% of Diageo's roughly $3.7 billion in annual beer sales. Agence France-Presse/Getty Images
The continent is especially important for Diageo. Africa accounts for about 40% of the company's roughly $3.7 billion in annual beer sales, with the majority of that coming from Guinness in Nigeria and other parts of West Africa.
Often sold for almost double the price of local beer, Guinness—packaged in bottles as Guinness Foreign Extra Stout—has for years been a symbol of aspiration for consumers in countries such as Nigeria, Ghana and Kenya. In 2011, Nigeria overtook Ireland as the biggest single market for Guinness.
But as economies in the region have slowed in recent quarters, Guinness sales have been hit by consumers trading down to cheaper beers or buying spirits that pack a higher alcoholic punch. Sales of Guinness fell 5% in Diageo's Africa reporting region, which also includes Turkey and Eastern Europe, in the year ended June 30. Nigeria was worst hit, posting a 9% fall in total sales.
The drop-off has caused Diageo to change tack. The new campaign uses singers, rap artists and dancers to advocate Guinness, marking a departure from the "demonstrations of wealth and success" implied in previous promotions, according to Mark Sandys, Guinness's global brand director.
"We are trying to reframe Guinness for a new generation of consumers," Mr. Sandys said in an interview.
Guinness is viewed by many analysts as incongruous in Diageo's portfolio of high-end whiskeys and vodkas, and rumors have persisted that the brand could be sold off.
But Chief Executive Ivan Menezes has repeatedly stressed the brand's importance for Diageo's expansion plans in Africa. "This brand has tremendous opportunity, and our beer footprint in Africa is an enormous asset for Diageo," Mr. Menezes said in a recent interview.
The battle for Africa among major brewers is heating up. The continent is dominated by four international drinks companies—Diageo, SABMiller PLC,Heineken NV and France's Castel Group—while thousands of local and home brewers occupy the lower-price and illegal end of the market.
Diageo has raised its game in Africa in recent years, spending more than £1 billion ($1.66 billion) on capacity expansion and acquisitions in the past decade.