In the ever-evolving Canadian market, consumer tastes and preferences are constantly shifting. For Diageo Canada, staying ahead of these changes isn’t just a priority – it’s the foundation of its strategy. Nadia Niccoli, head of marketing at Diageo Canada, discusses how this consumer-first approach drives the company’s brand-building, innovation and market engagement.
The consumer leads the way
“Being consumer-centric isn’t just about knowing where the consumer is. It’s about understanding who they are, what drives them and how we can show up meaningfully in their lives,” Niccoli said. “At Diageo, we don’t follow trends – we follow people, to build brands that earn their place in culture by adding real value to real moments.”
This shift in consumer tastes and preferences is largely driven by cultural diversity, sustainability, mindful consumption habits and economic factors. With a vast portfolio of brands steeped in history and heritage, Diageo Canada is uniquely positioned to connect with the country’s diverse consumer base. “We want to make sure we’re leading the category and evolving as consumer preferences evolve,” Niccoli said.
Balancing premiumization against economic sensitivity
While premiumization has been a strong trend in recent years, economic pressures are a key consideration. Niccoli acknowledges that consumers are increasingly value conscious. “It’s important we reinforce the value proposition of our brands and present value-seeking consumers with opportunities to lean into our offerings,” she said. Ensuring Canadians see themselves reflected in the brands they love is central to this strategy, but the company is also invested in introducing products that cater to shifting preferences, particularly the rise in demand for non-alcoholic beverages and mindful consumption.
The rise of mindful consumption
Gen Z has been at the forefront of the mindful consumption movement, with Millennials quickly following suit. “This presents a great opportunity for us to showcase our expanding non-alcoholic offerings and reinforce with consumers that we’re adapting to their evolving preferences and offering choices that align,” Niccoli said.
A prime example is Seedlip, Diageo’s non-alcoholic spirits brand. Niccoli says increasing the visibility of Seedlip by featuring it on cocktail menus in both independent and national establishments helps solidify the non-alcoholic offering as an integral part of the social and hospitality experience.
Guinness 0 has been another success in the Canadian market, reinforcing the demand for mindful consumption. Rather than launching it as a separate sub-brand, Niccoli’s team leveraged Guinness’s strong legacy. “Guinness 0 was one of the most successful launches in Canada because we introduced it authentically, focusing on the community and togetherness that Guinness has fostered over its 200-year history,” Niccoli said. “Young adult Canadians are very attuned to inauthentic messaging. It’s crucial that our communications are sincere and reflect our commitment to our values, whether it’s maintaining our brand’s tone and voice, upholding sustainability efforts or ensuring our moderation practices remain consistent.”
Beyond product innovation, Diageo also prioritizes responsible drinking, partnering with strategic partners to promote moderation and responsible choices among Canadians during festive seasons. In 2022, Diageo and Traffic Injury Research Foundation formed a public-private Traffic Safety Coalition to promote education and awareness programs on the dangers of impaired driving.
Building purpose-driven connections across Canada
A key aspect of Diageo’s strategy is building meaningful connections with Canadian communities. Through partnerships with iconic local brands and grassroots initiatives, the company strives to show up in ways that feel authentic, relevant and grounded in purpose. “Canada’s consumer landscape is rich and diverse, and it’s crucial that our brands reflect that,” said Niccoli. “Whether we’re celebrating the Toronto Caribbean Carnival with Guinness, or Lunar New Year and Diwali with Johnnie Walker, it’s important we’re ensuring Canadians of all cultural backgrounds see themselves represented in our offerings.”
It’s about fostering authentic connections, not just launching products.
Nadia Niccoli, Diageo Canada
Diageo Canada balances its large-scale brand presence with localized engagement, ensuring that macro sponsorships and partnerships translate into meaningful, community-level interactions. By focusing on both broad initiatives and smaller, high-impact activations, the company connects with consumers in ways that resonate on a personal level.
“We are deeply connected with local partners here in Canada, and that’s a vital part of our strategy,” Niccoli said. “We’re not simply lifting and shifting global playbooks – we’re building fit-for-purpose work that resonates locally through meaningful partnerships with Canadian brands, people and cultural moments. It’s about bringing the best of Diageo to life in a way that’s authentically Canadian.” A great example on the macro scale is Diageo Canada’s partnership with Tim Hortons and Baileys. Designed for a mass Canadian audience, Diageo collaborated with the iconic Canadian brand to introduce a unique lineup of limited-edition, non-alcoholic menu items. This collaboration leveraged Tim Hortons’ deep cultural significance to create offerings that felt both familiar and exciting to consumers.
At the community level, Diageo Canada has also embraced brand-love micro activations, such as partnering with Good Behaviour in Toronto to create a limited-edition Guinness ice cream for St. Patrick’s Day. “These micro-level initiatives build a network of community influence, touching different parts of people’s daily journeys,” Niccoli said. “It’s about fostering authentic connections, not just launching products.”
Community engagement always starts at the brand level. “Wherever we can, we try to raise a glass to the incredible people who continue to shape our legacy,” said Niccoli, referencing the Crown Royal Rig – a larger-than-life, whisky barrel-inspired purple 18-wheeler, which recently toured Manitoba to give back to the communities that have long supported Crown Royal’s craftsmanship and heritage. As part of the campaign, Crown Royal donated non-perishable food items to support Harvest Manitoba, encouraging consumers to contribute as well, packing over 9,000 pounds of food at a time when food insecurity is at its highest across Canada. “We’re not just showing up; we’re showing up with purpose,” Niccoli said.
These efforts are also embedded within the organization itself. Diageo is committed to inclusion within the industry, providing support and mentorship to female students enrolled in food and beverage programs in colleges in Ontario. The company has also collaborated with Business in The Streets, a local organization in Ontario, to support young entrepreneurs in Toronto and Ottawa with business skills training.
Sustainability at the core
Across all brands, sustainability and ethical sourcing are a common thread. Diageo has ambitious sustainability goals, including reducing its environmental impact through its “grain-to-glass” initiative. This strategy encompasses responsible sourcing, emissions reduction, improved water stewardship and inclusion efforts across the company’s operations and supply chain. Diageo aims at reaching net zero carbon at its operations and harnessing 100 per cent renewable energy by 2030. “Consumers are favouring locally and ethically sourced products, and sustainability is paramount for Diageo,” Niccoli said. “Anytime we have the opportunity to educate consumers about our sustainability commitments, we take it.”
Looking ahead
By reflecting what Canadian consumers want and value, from mindful drinking and sustainability to cultural authenticity, Diageo Canada is successfully tailoring its global legacy to local needs. Niccoli and her team remain focused on staying ahead of trends and ensuring that their portfolio continues to resonate with Canadians. Whether through expanding non-alcoholic offerings, championing sustainability, or forging meaningful local partnerships, Diageo Canada is committed to delivering high-quality experiences that align with evolving consumer preferences.
As the landscape continues to change, one thing remains constant: Diageo Canada’s belief in the power of listening to its consumers and responding with innovation, authenticity and responsibility.
