UK: Diageo overhauls Northern Ireland distribution
Diageo has moved to cut costs in Northern Ireland with the overhaul of its distribution network in the province.
The UK drinks giant has contracted out the distribution of its portfolio to TDG Logistics, which will supply Northern Ireland from a single site instead of the four currently owned by Diageo.
The decision to close its three other depots could lead to the loss of over 40 jobs, a spokesperson for Diageo Northern Ireland said today (12 May). However, she added that affected employees would be given the chance to relocate to the remaining site in Mallusk, Co. Antrim, or elsewhere in the organisation.
"The market is very challenging and consumers' drinking habits are changing," the spokesperson said. "Although our premium brands are performing very well, as our logistics costs are fixed and volumes are declining, the cost of delivering our whole portfolio has gone up."
Diageo employs around 580 workers in Northern Ireland with 100 employees holding posts in logistics. The company said the decision to revamp its distribution network would not affect its Bushmills and Baileys sites or its sales department.
The spokesperson refused to disclose how much money Diageo expected to save from the move and added: "This is not just about cost, we want to increase our flexibility and improve our competitiveness and we are hoping to see the benefits of that."
Like the market around it, the wine industry’s supply chain is evolving rapidly. David Skalli, of Paris and London-based industry consultants Skalli & Rein, talks to just-drinks about the changes and ...
The European Forum for Responsible Drinking (EFRD), the industry-sponsored social aspects organisation, has been forced to postpone plans to set out specific guidelines on sponsorship after the member...
Diageo has added a new food section to its malt whisky website, as part of its ongoing whisky and dining initiative....
A second beverage alcohol firm in China has moved to deny reports that it is in talks to sell a stake in the company to Diageo....
Diageo has applied to patent a method of making naturally sparkling spirits in the UK, the company has confirmed....
Skyy Spirits has become a fully-owned subsidiary of Campari after the Italian drinks group bought the remaining stake in the US company....
Diageo has launched the third offering from its Guinness Brewhouse Series in Ireland....
A fresh name has entered the race for Independent Liquor with Singapore-based Asia Pacific Breweries applying to study the books of the New Zealand spirits group....
- Coca-Cola pressure builds as bid rumours swirl
- Gin: Plymouth's from Plymouth, London's from...?
- Why Chinese beverages won't conquer the world
- Fireball Recall: Putting Out Fire with Anti-Freeze
- Interview: Distell Vineyards & Estates' CEO
- Anheuser-Busch InBev cuts jobs in US shake-up
- Diageo targets Millenial women with Baileys push
- William Grant unveils bespoke Glenfiddich website
- Diageo unveils Ciroc in Times Square push
- NPD - DeLeon Tequila's Platinum and Reposado
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Beer Opportunities: Beyond Standard Lager
- The IWSR Global Trends Report 2014
- Global Cognac insights - market forecasts, product innovation and consumer trends research