| Diageo reviewing brewing Irish ops |
Posted: July 30 2007
The future of the St James’s Gate brewery in Dublin may be open to question as Diageo gets a review of its operating practices underway. Speculation that the valuable site will close with Diageo moving operations elsewhere have been downplayed by the company but the possibility remains on the cards.
A spokesperson for Diageo Ireland stated recently, “Diageo confirms that it is considering a number of important investment decisions on upgrading and renewing its brewing facilities in Ireland in the coming years.
“The company has therefore commenced a full assessment of its investment options for its brewing operations in Dublin, Dundalk and Kilkenny to enhance the long-term competitiveness and sustainability of the business in Ireland.”
The brewery produces 40 per cent of the world’s Guinness and a purpose-built green-field facility could make fiscal sense if it leads to the sale of the historic site. According to Andrew Holland, an analyst with London firm Dresdner Kleinwort, “Relocating a brewery is always a risk. We’ve seen it many times with a brand that is closely associated with a particular location”. |
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