Italy: Diageo to close Vittoria d'Alba plant in Italy

Diageo, the multinational beverage company, has confirmed the closure of its plant in Santa Vittoria d'Alba, located in the province of Cuneo, Italy. This decision, which will take effect in January 2025, leaves 350 employees facing uncertainty about their future. According to Kerry Easter, the company's Chief Operating Officer, the closure is final and aligns with Diageo's strategy to shift production to stronger markets, particularly in Northern Europe. The announcement has sparked criticism and concerns among workers and local authorities, Vinetur reported on December 14.

The Santa Vittoria d'Alba facility, situated in an area with a rich tradition in the alcoholic beverage industry, is Diageo's only plant in Italy. Despite being recognized as productive and efficient, the company stated that the closure is part of its plan to optimize operations in competitive markets. The official announcement was made during a meeting at the headquarters of the Piedmont Region, where union representatives and local officials expressed their outrage over the decision.

The meeting, held at the Piedmont Region skyscraper, was attended by senior Diageo executives, representatives from Confindustria Cuneo, regional president Alberto Cirio, mayors from neighboring municipalities, and local councilors. Regional authorities called the decision "unacceptable" and emphasized their commitment to finding alternatives to preserve jobs and continue production at the site.

Diageo has pledged to assist in finding a buyer for the plant. Kerry Easter stated that the company would evaluate acquisition proposals to mitigate the social impact of its exit. However, skepticism remains high among the workforce, who face an uncertain future. Regional President Alberto Cirio vowed to work with the Italian government to seek solutions, including initiating an "active search process" to identify potential investors interested in acquiring the plant and maintaining production in the region.

The Italian government plans to issue a call for projects eligible for state-funded development contracts. These initiatives aim to attract buyers who can guarantee the continuity of operations in Santa Vittoria d'Alba. In the coming weeks, a working group at the Ministry of Economic Development will coordinate efforts to secure concrete acquisition proposals.

Employees of the plant, many of whom have decades of specialized experience in beverage production, have voiced concerns about the lack of concrete assurances for their future. Unions, which organized protests after the initial announcement in October, have reiterated their commitment to advocating for job stability and economic security for the affected families.

Meanwhile, mayors from nearby towns, including Alba, Bra, and Santa Vittoria d'Alba, have called on Diageo to reconsider its decision. They argue that the plant is not only vital to the local economy but also an integral part of the region's industrial fabric. Diageo, however, maintains that while the Italian market remains strategically important for its international operations, production must align with the demands of stronger markets, thereby justifying the closure.

The planned shutdown marks a turning point for a community historically reliant on the plant as a source of employment and economic development. The uncertainty surrounding the future of the workers and the local economy highlights the complexities of corporate decisions and the tensions they create between multinational companies and the regions where they operate.

15 December, 2024