E-Malt.com News article: Ireland: Brewing giant Diageo to sell landmark site

Brewing giant Diageo has confirmed that it will be selling its landmark site in the historic heart of the city, quelling speculation that the lands would be given to the people of Kilkenny, Kilkenny People reported May 15.

Fianna Fail councillor Michael Lanigan called last week on the drinks company to consider giving the site to the people of Kilkenny but this request has been shot down. Operations manager Ian Hamilton told the Kilkenny People that the site would be sold for development purposes but added that the company hoped that the site would be developed in an appropriate way.

"Diageo are very conscious of the historical significance of the site and will be working closely with the local authority and the heritage bodies so that it is developed in as appropriate a way as possible. While obviously we wish that the brewery wasn't closing, it is a once-in-a-century opportunity and the future of the city will be influenced by what happens to the site. When the new plant is completed in Dublin the three sites will be released for appropriate development. The site will be sold and the sale of the three sites which are worth 650 million euro will be centrally managed by dedicated teams."

The Corkman who has worked at the Kilkenny plant for 27 years added that it had been upsetting for workers that in the immediate aftermath of the news of the closure there seemed to be more attention given to the future use of the site than the contribution made by employees to the local community."It has been upsetting for us all in the brewery that all people seem to be talking about is the future of the site. We have a dedicated workforce who have contributed a great deal to the town," he said.

He also remarked that he found it hard to imagine that in time the distinctive smell of hops wafting across banks of the River Nore would be no more. Beer has been brewed at the site for hundreds of years. The first beer was brewed by the friars at St Francis' Abbey which is on the site of the current brewery in the 13th century.

The future for brewery employees:

At its height, the brewery employed over 400 people in the 1980s. In recent years voluntary redundancies have seen this number reduced to 92. The news of the closure was no surprise to the staff who have been involved with meetings regarding the company's future. There were a number of meetings held over the last year between management and staff and employees were aware that there was a review of the company's operations. A severance package is currently being negotiated between the company and the Labour Relations Commission (LRC).

Diageo is also keen to facilitate staff that want to move to it's new plant in Dublin when it opens. "There are a lot of highly skilled people who are a great asset to the company and who want to remain with Diageo after the brewery in Kilkenny closes. There are assumptions being made by the public that people will not want to work in the new plant. Diageo is a very good employer and many of the people working in St Francis' brewery want to remain working with them.

Staff have been very understanding and realise that this is part of a global phenomen. There is great morale at the brewery and we have an outstanding service record. Of course people are very disappointed and the initial mood was both sombre and sad. Many would say that the announcement was not a surprise but it was a shock all the same. There is a great heritage attached to the brewery in Kilkenny and it has been a very emotional time for everyone involved. Saying that after the news was delivered on Friday the workers out of their own choice went back to production. That was their wish and it says a lot," added Mr Hamilton.


15 May, 2008