IRELAND: Diageo exec warns of "serious damage" from duty hikes
Diageo's Ireland chief has warned of grave consequences from the hikes
The head of Diageo's Ireland business has heavily criticised last week's alcohol duty rises, warning it will cause "serious and lasting damage" to the country's drinks industry.
In its Budget last week, the Irish Government announced an 18% increase on beer tax, and a 15% rise on wine and spirits. The move has already attracted criticism from trade groups in the country.
In yesterday's Irish Independent, David Smith, Diageo's Ireland director, warned "when you increase excise, you kill jobs".
He wrote: "It (the duty rises) makes it an absolute certainty that, come next October, there will be fewer businesses, and fewer jobs in the drinks industry."
Smith, who is also chairman of the Irish Brewers Association, said Ireland's drinks industry had taken a "wallop", with the third successive duty increase.
He added: "There is no doubt in the industry that the Government's high tax policy will cause serious and lasting damage."
Smith also argued that the higher taxes will "make cross-border shopping more appealing", with consumers more likely to shop in Northern Ireland.
The Diageo executive also warned of the impact high duty rates are having on Ireland's on-trade. "In the last five years, more than 1,000 pubs have closed their doors, and high taxes are playing a significant part in that," he wrote.
In addition to the duty increases, Ireland's drinks industry is also facing the threat of a ban on companies sponsoring sports events and using outdoor advertising. Last year, Diageo's then-CEO Paul Walsh branded the plans "ridiculous".
In the third part of this month's management briefing, Ben Cooper reviews the environmental sustainability of three of the world's biggest brewers: Anheuser-Busch InBev, Carlsberg and Diageo....
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
I'm calling it, people. Today is the day that I feel confident enough to conclude that the China 'crisis' is not a blip....
Since the great recession of 2008/2009 Diageo has transformed itself, primarily through acquisition, from being overly focused on mature markets to a more balanced geographic split and if, as seems li...
How long is a satisfactory term for a CEO? Of course, there's two answers to this question: One if the company is publicly-listed, the other if it's a privately-held firm. Then, of course, there is th...
The world’s leading spirits producer, Diageo also ranks 23rd in the global wine market. This profile analyses the role of wine in the company’s wide-ranging alcoholic drinks operations, considering op...
"The Future of the Wine Market in the United Arab Emirates to 2017: Market Size, Distribution and Brand Share, Key Events and Competitive Landscape" is the result of Canadean’s extensive market and co...
- Whisk(e)y leads vodka in US, but for how long?
- Scottish Independence and Scotch Whisky
- Wine in the UK: Tell Us Something We Don't Know
- Sustainability in Spirits - Part I
- Will Craft Brewers be Tempted by Private Equity?
- LIVE BLOG: Industry responds to Scotland 'No' vote
- Diageo settles Explorers Club trademark dispute
- A-B InBev shakes up Euro units, UK head steps down
- Bacardi lifts curtain on Bombay Sapphire distiller
- Diageo unveils sixth Johnnie Walker House in Asia