E-Malt.com News article: 2498

UK: Diageo announced on April 15 its intention to transfer the brewing of GUINNESS® beer for the Great Britain market to the company’s historic St James’s Gate brewery in Dublin. Regrettably, the plan would result in the closure of the Park Royal brewery in West London during the summer of 2005.

Gerry O’Hagan, Supply Director for Diageo’s UK & Ireland brewing business said: “A major review of our brewing business in UK & Ireland has shown very clearly that the best option for the future would be to consolidate our production for the GB market into Ireland. Our Dublin brewery already produces the equivalent of some eight million kegs of GUINNESS® every year for distribution to international markets including Europe and the USA. With some additional investment in technology St James’s Gate could absorb the four million equivalent kegs currently produced at Park Royal.

“Sadly, around 90 Diageo jobs would be lost at Park Royal. This is particularly regrettable because of the excellent track record of our employees there. Our highest priority will be to support our people at Park Royal in working through this difficult period”

He continued: “We have the opportunity to get our brewing business into the best shape to support the long-term growth and development of the GUINNESS® brand. Between the two breweries in London and Dublin, we currently have more brewing capacity than we need. We know that it will take only a limited additional investment to build the already substantial capacity of St. James’s Gate to the level where it can supply the GB market with the draught GUINNESS® currently supplied from Park Royal. “The right decision for the future of the GUINNESS® brand is to invest in Dublin. This would allow us to maintain the high quality of this premium brand; to deliver the service levels our customers expect and to keep our cost base competitive with the best industry standard.”

Diageo will now enter a full consultation process with the representatives of those Diageo employees at Park Royal. While it will stop brewing GUINNESS® beer at Park Royal after the Summer of 2005, Diageo will retain a significant presence on the Park Royal site with a prestige office development housing more than 1,000 people in the sales and marketing HQ for Diageo GB and in other Diageo businesses including Diageo Global Supply and Diageo Africa.

GUINNESS® continues to grow globally with more than 10 million glasses consumed every day in 150 markets. This year, Diageo will invest around £150 million in marketing spend behind the brand. The proposed transfer of brewing to Ireland would represent a significant boost for the St James’s Gate site where Arthur Guinness started brewing his unique stout in 1759.

Diageo is the world's leading premium drinks business. With its global vision, and local marketing focus, Diageo brings to consumers an outstanding collection of beverage alcohol brands across the spirits, wine and beer categories including Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, Captain Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageo trades in some 180 countries around the world and is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE).

GUINNESS® is one of Diageo's eight Global Priority Brands. This year, Diageo will spend around £150 million marketing the GUINNESS® brand internationally. Top 5 markets: GB, Ireland, Nigeria, US and Cameroon. GUINNESS® is brewed in 50 countries worldwide and sold in more than 150. GUINNESS® continues to grow globally - 10 million glasses are consumed every day around the world. There are three main GUINNESS® brand variants enjoyed around the world - GUINNESS® Draught, GUINNESS® Foreign Extra Stout and GUINNESS® Extra Stout (Original).


16 April, 2004