DIAGEO, the firm which produces Guinness, has not ruled out moving its Irish operation from St James's Gate, the site where the black stuff has been brewed for almost 250 years.
The firm said it has begun an assessment of its brewing operations in Ireland and that "nothing has been ruled out". Media reports that Diageo Plc had plans to move production to a greenfield site on the outskirts of the capital were described as "pure speculation" by a spokeswoman.
"The Diageo brewing business is considering a number of important investment decisions on upgrading and renewing its brewing facilities in Ireland in the coming years," the firm said in a statement.
The review is set to take up to eight months. Lease
The site, where Arthur Guinness took out a 9,000-year lease on a disused brewery in 1759, has grown into what the brewer describes as "a prime 64-acre slice of Dublin". Media reports suggested the land could fetch up to €3bn.
Sales of Guinness, which gets its trademark dark colour from roasted barley, fell about 7pc in Europe in the final six months of last year. However, global sales are up about 3pc, the spokeswoman said.
Diageo operations in Dundalk and Kilkenny are included in the review.
GRAINNE CUNNINGHAM
Irish Independent
Showing posts with label guinness planning. Show all posts
Showing posts with label guinness planning. Show all posts
Tuesday, 19 June 2007
Sunday, 17 June 2007
Last orders for Guinness time at St James's Gate
THE days of Guinness at St James's Gate are numbered as Diageo prepares to move to a greenfield site on the outskirts of Dublin, the Sunday Independent understands.
It is expected that the sale of the extensive city-centre site would fetch close to €3bn.
According to sources at the company, plans are under way at senior management level to begin the move away from the city centre to a large new plant to be built at a greenfield site to the north of Dublin.
There was much talk among employees at the world-famous firm last week about the company's plan to move, which is expected to involve substantial job losses.
The plant dates back to 1759, and since production of Guinness in London has been moved to Dublin a major overhaul of the company's operation in Dublin is required.
It is believed that given the age of the buildings at St James's Gate, it is preferable to sell much of the site and start with a new brewery.
One area that has been mentioned is Balbriggan, given its proximity to the proposed new Dublin Port.
Such a new plant would be a great attraction for the company. While the cost of building a new plant would be very substantial, the sale of lands in the city centre for €2.5-3bn would offset such expenditures. The area around the brewery has also been designated by the City Council as a new development quarter.
A spokeswoman for the company said that while Diageo consistently monitors its operations and output, any talk of the company moving out of the extensive James's Gate site was "pure speculation". However, when asked to clarify whether there are any plans to move from the city centre or whether the company was looking at purchasing any site on the edge of Dublin, the spokeswoman refused to deny it, again using the words "pure speculation".
Diageo Ireland employs more than 2,200 people in its various plants around the country but any move would involve a streamlining of the operation while ensuring an increase in capacity.
Last month Diageo reported a decline in European sales in the six months to the end of December, led in particular by weakness in Ireland, Britain and Spain. Michael Patten, a spokesman for Diageo Ireland, attributed the weaker overall performance to a move away from pubs to home consumption.
According to Mr Patten, about 70 per cent of the group's Irish sales in 2001 were in pubs, compared with j 50 per cent today.
DANIEL MCCONNELL
Sunday Independent
It is expected that the sale of the extensive city-centre site would fetch close to €3bn.
According to sources at the company, plans are under way at senior management level to begin the move away from the city centre to a large new plant to be built at a greenfield site to the north of Dublin.
There was much talk among employees at the world-famous firm last week about the company's plan to move, which is expected to involve substantial job losses.
The plant dates back to 1759, and since production of Guinness in London has been moved to Dublin a major overhaul of the company's operation in Dublin is required.
It is believed that given the age of the buildings at St James's Gate, it is preferable to sell much of the site and start with a new brewery.
One area that has been mentioned is Balbriggan, given its proximity to the proposed new Dublin Port.
Such a new plant would be a great attraction for the company. While the cost of building a new plant would be very substantial, the sale of lands in the city centre for €2.5-3bn would offset such expenditures. The area around the brewery has also been designated by the City Council as a new development quarter.
A spokeswoman for the company said that while Diageo consistently monitors its operations and output, any talk of the company moving out of the extensive James's Gate site was "pure speculation". However, when asked to clarify whether there are any plans to move from the city centre or whether the company was looking at purchasing any site on the edge of Dublin, the spokeswoman refused to deny it, again using the words "pure speculation".
Diageo Ireland employs more than 2,200 people in its various plants around the country but any move would involve a streamlining of the operation while ensuring an increase in capacity.
Last month Diageo reported a decline in European sales in the six months to the end of December, led in particular by weakness in Ireland, Britain and Spain. Michael Patten, a spokesman for Diageo Ireland, attributed the weaker overall performance to a move away from pubs to home consumption.
According to Mr Patten, about 70 per cent of the group's Irish sales in 2001 were in pubs, compared with j 50 per cent today.
DANIEL MCCONNELL
Sunday Independent
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