The Supply Chain Year in Stories: December 2024

The UK Guinness shortage and Intel’s leadership shakeup were amongst the biggest stories covered by Supply Chain Digital in December

Guinness and the Challenge of Balancing Supply and Demand

Guinness came into the spotlight as pubs across Great Britain faced restrictions on how much they could order in the lead-up to Christmas.

Diageo, the company behind the iconic stout, cited “exceptional demand” as the reason for the measures.

The brand was riding a wave of rising popularity, especially among women and younger drinkers, but the festive rush and rugby internationals stretched supply chains to their limits.

Diageo said it was operating at full capacity, producing as much Guinness as its facilities can handle.

Yet, the surge in demand meant it had to implement order limits. The company confirmed it allocated weekly supplies to ensure enough stock reaches pubs and bars throughout the Christmas period.

A spokesperson for Diageo explained: “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.”

The rise in Guinness consumption came against the backdrop of a broader decline in beer drinking.

Between July and October, overall beer sales in pubs and bars were slightly down, but Guinness bucked the trend. Data from food and drinks industry research firm CGA showed keg sales of Guinness grew by more than 20% during the same period.

This unexpected surge was attributed to savvy marketing and a shift in drinking habits.

Intel’s Leadership Shakeup Amid Semiconductor Challenges

The semiconductor industry reached a pivotal juncture, with significant changes driven by the rapid progression of AI, complex supply chain dynamics and the evolving landscape of global technology partnerships.

Intel, historically a frontrunner in chip production and innovation, faced an uncertain period. Under the stewardship of CEO Pat Gelsinger since February 2021, the company launched ambitious plans for transformation and significantly ramped up its manufacturing activities during an extremely competitive era.

However, the announcement of Pat’s retirement raised questions for both Intel and the broader semiconductor industry.

Intel has been aggressively expanding its manufacturing capabilities through its IDM 2.0 strategy, while battling stiff competition from entrenched rivals such as TSMC in contract manufacturing and Nvidia which specialises in AI-focused chips.

In recent years, the global supply chain for chips has been deeply disrupted, with logistical bottlenecks, raw material shortages and geopolitical conflicts affecting the timely production and delivery of key components. These disruptions put additional pressure on those in the industry to not only accelerate technological innovations but also stabilise supply chains and ensure reliable production.

As Intel tackled a 61% decline in stock value since 2021 and contemplated its future strategies in capturing the AI chip market, the leadership shift was posed to shape the company’s direction for many years to come. 

Pat had been guiding Intel through its various transformation initiatives since his appointment in 2021.

Following his departure, the company’s board selected interim Co-CEOs to steer the ship. 

Original Article – The Supply Chain Year In Stories: December 2024 (supplychaindigital.com)