Diageo Reaffirms Commitment to Beer
Any rumors of Diageo selling its beer unit were laid to rest today after the company announced plans to invest £520 million ($1 billion) in a new brewery near Dublin. Once it is completed in 2013, the new brewery will be the largest in the country, says Diageo.
The company also plans to renovate its famed Dublin brewery at St. James’s Gate (which produces Guinness for the Irish and British markets) and close two smaller breweries, Kilkenny and Dundalk, by 2013. When the program is completed St. James’s Gate will be the second largest brewery in the country.
The new brewery near Dublin will produce Guinness for export markets (such as Asia and Africa) and make ales and lagers for the Irish market.
“This will be the single biggest capital investment made by Diageo in its supply infrastructure since the company’s creation 10 years ago and will enhance the cost competitiveness of our global beer operations. It represents a major vote of confidence in our beer business and in Ireland as a global brewing centre of excellence for our company,” said ceo Paul Walsh
“It will marry 21st century solutions to our 300 years of brewing tradition, craft and heritage in what I believe will be a winning combination.”
Walsh said the new brewery site has yet to be determined and the group is looking at a number of options. The move will raise its Irish annual brewery capacity by 20% to 9 million hectoliters, with 6 million from the new brewery.
Surplus land on parts of the St. James’s Gate site as well as in Dundalk and Kilkenny will be available for redevelopment. It is estimated to have a current value of approximately €500 million (£400 million).
Upon closing Kilkenny and Dundalk, Diageo says its Irish brewing workforce will be cut from 450 to 250 by 2013.
“Both of these breweries have played a critical role in the historic success of Diageo’s beer brands in Ireland but currently do not have the scale necessary for sustained success in increasingly competitive market conditions,” said Diageo in a statement.
WILLIAM GRANT APPOINTS NEW CHAIRMAN
Peter Gordon, the great, great grandson of company founder William Grant, has been appointed non-executive chairman of William Grant & Sons. Gordon became a member of its board in 2003. He replaces another family member, Charles Gordon, who will transfer to the newly created position of Life President.
CHAMPAGNE ROEDERER BUYS CALIFORNIA VINES
Champagne house Louis Roederer has acquired 27 acres of vineyards in Anderson valley (near Sonoma) in northern California to expand its operations. Pinot Noir is reportedly produced on 17.5 of those acres. In total, the French company now owns 486 acres of vineyards in the valley. Transaction details were not disclosed.
WSD BRIEFS:
COCKTAIL MIXER STIRRINGS HAS APPOINTED Robert Swartz, former VP of sales at Terlato Wines International, as ceo.
THE CALIFORNIA ASSEMBLY has unanimously approved legislation to help nonprofit organizations hold fundraising events involving donated California wine.
Assembly Bill 1964 now moves to the state Senate for further review.
Until Monday, Megan
“Well-timed silence hath more eloquence than speech.”
Martin Fraquhar Tupper
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
The company also plans to renovate its famed Dublin brewery at St. James’s Gate (which produces Guinness for the Irish and British markets) and close two smaller breweries, Kilkenny and Dundalk, by 2013. When the program is completed St. James’s Gate will be the second largest brewery in the country.
The new brewery near Dublin will produce Guinness for export markets (such as Asia and Africa) and make ales and lagers for the Irish market.
“This will be the single biggest capital investment made by Diageo in its supply infrastructure since the company’s creation 10 years ago and will enhance the cost competitiveness of our global beer operations. It represents a major vote of confidence in our beer business and in Ireland as a global brewing centre of excellence for our company,” said ceo Paul Walsh
“It will marry 21st century solutions to our 300 years of brewing tradition, craft and heritage in what I believe will be a winning combination.”
Walsh said the new brewery site has yet to be determined and the group is looking at a number of options. The move will raise its Irish annual brewery capacity by 20% to 9 million hectoliters, with 6 million from the new brewery.
Surplus land on parts of the St. James’s Gate site as well as in Dundalk and Kilkenny will be available for redevelopment. It is estimated to have a current value of approximately €500 million (£400 million).
Upon closing Kilkenny and Dundalk, Diageo says its Irish brewing workforce will be cut from 450 to 250 by 2013.
“Both of these breweries have played a critical role in the historic success of Diageo’s beer brands in Ireland but currently do not have the scale necessary for sustained success in increasingly competitive market conditions,” said Diageo in a statement.
WILLIAM GRANT APPOINTS NEW CHAIRMAN
Peter Gordon, the great, great grandson of company founder William Grant, has been appointed non-executive chairman of William Grant & Sons. Gordon became a member of its board in 2003. He replaces another family member, Charles Gordon, who will transfer to the newly created position of Life President.
CHAMPAGNE ROEDERER BUYS CALIFORNIA VINES
Champagne house Louis Roederer has acquired 27 acres of vineyards in Anderson valley (near Sonoma) in northern California to expand its operations. Pinot Noir is reportedly produced on 17.5 of those acres. In total, the French company now owns 486 acres of vineyards in the valley. Transaction details were not disclosed.
WSD BRIEFS:
COCKTAIL MIXER STIRRINGS HAS APPOINTED Robert Swartz, former VP of sales at Terlato Wines International, as ceo.
THE CALIFORNIA ASSEMBLY has unanimously approved legislation to help nonprofit organizations hold fundraising events involving donated California wine.
Assembly Bill 1964 now moves to the state Senate for further review.
Until Monday, Megan
“Well-timed silence hath more eloquence than speech.”
Martin Fraquhar Tupper
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 11:58 AM
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