IRELAND: Diageo agrees brewery site acquisition
Diageo Ireland has entered into agreements to acquire a 73-acre greenfield site in Leixlip, Co. Kildare, with the intention to build a brewery.
In a statement today (11 September), the drinks giant said that the development represents the next stage of the EUR650m (GBP520m) capital investment in its brewing operations in Ireland announced by Diageo in May.
It is anticipated that the new brewery will be completed by 2013 and will be called the "Arthur Guinness Brewery".
"Once commissioned, the new brewery - in conjunction with the remodelled St. James's Gate brewery - will transform Diageo Ireland's current brewing operations into a two-brewery centre of excellence to support the growth and development of its domestic and global beer business," a statement said.
The company said that the site has important historical and heritage links to Guinness. Arthur Guinness established his first brewery in Leixlip in 1755 before moving to St. James's Gate in 1759. Most of the proposed site will be purchased from the Guinness family, direct descendents of Arthur Guinness.
The remaining area of the site will be purchased, subject to council approval, from Kildare County Council.
The site will be the biggest Diageo brewery in the world and the largest in Ireland.
Brian Duffy, Guinness global brand director and chairman of Diageo Ireland, said: "Not only are we demonstrating our commitment to Ireland, we are also staying true to the roots and heritage of the Guinness brand and Arthur himself.
"A new world-class brewery built in a location with such close historical links and with the full support of the Guinness family, is a remarkable milestone in the life of a remarkable brand and something I feel that only Diageo with its sense of heritage and tradition would do."
Gerry O'Hagan, supply director for Guinness and Baileys, added: "The choice of the location of the new brewery follows an extensive due diligence and site selection process.
"The new brewery is part of 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 here in Ireland as a global brewing centre of excellence for our company. We will now progress planning approval for the site as quickly as possible."
Recent results suggest all spirits companies are feeling the effects of the downturn but some are better equipped for long-term growth than others. Jeremy Cunnington of Euromonitor International asses...
Legislation being proposed by the Scottish government would, if passed, represent some of the strictest alcohol regulation in the EU, so it's no surprise that it has provoked widespread reaction. just...
Asif Adil, managing director of Diageo India, has left the company and will be replaced by Roland Abella, the drinks giant has said....
The top ten stories published on just-drinks this week:...
Diageo is to cut 150 jobs in North America as part of a cost savings plan in the region....
ThaiBev has declined to comment on reports out of India that the firm has entered negotiations with Vijay Mallya's United Spirits....
Diageo has confirmed that it will temporarily close one of its facilities in Scotland later this month....
Guinness is bringing back a number of its iconic television adverts as part of its Guinness Classic ads campaign....
- What Brexit means for drinks industry? - Analysis
- The post-Brexit winners and losers - Analysis
- What does Brexit mean for AB InBev's SAB deal?
- Is there a future for the global beer brand?
- Customisable drinks - The next consumer trend
- The UK Referendum - just-drinks Live Blog
- Aldi dealt alcohol sales blow in Australia
- Ex-William Grant CEO Stella David re-joins Bacardi
- UK spirits producers braced for Brexit impact
- Maxxium eyes US$1.4bn opportunity in UK spirits
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Spirits and Wine: Corporate Overview
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends