Diageo is switching some of its glass supply business from Owens-Illinois to Ardagh Group

Diageo is switching some of its glass supply business from Owens-Illinois to Ardagh Group

Diageo has dismissed a media report suggesting that it is moving the bottling of the Johnnie Walker Scotch whisky brand from Scotland to England.

The Daily Record reported on Saturday (3 August) that the company has signed a contract to move bottling of the brand from Alloa to Yorkshire. However, the change of contracts involves glass manufacturing firms and not bottlers.

Diageo is moving a proportion of its glass supply business from one supplier to the other, a company source said. No Diageo employees will be affected by the changes.

Luxembourg-headquartered supplier Ardagh Group, which has plants in Irvine, Scotland, and Barnsley, Yorkshire has won a new ten-year expanded contract with Diageo. The drinks company's other glass supplier, Ohio-headquartered Owens-Illinois (O-I), which has a plant in Alloa, lost out on the bid. However, it will still have a “substantial” amount of business with the firm, just-drinks understands. 

The companies supply glass for Diageo's Scotch brands, as well as Smirnoff and Tanqueray gin.

A statement from Diageo said: “A sustainable supply of high quality glass is crucial to our business and we went through a fair and proper process with our suppliers.

“We remain a major customer of O-I in Alloa and plan to continue to source significant volumes from them.” 

Last week, Diageo reported a 6.2% rise in full-year sales and double-digit growth in group net profits, helped by a strong performance in North America.