Diageo warned that a hard Irish border because of Brexit could cost its suppliers

Diageo warned that a hard Irish border because of Brexit could cost its suppliers

Diageo has reportedly said the loss of EU trade deals through Brexit would be "unwelcome, but... manageable".

According to Reuters, Diageo said yesterday being cut out of improved trade agreements with countries such as South Korea and Colombia, and the introduction of a hard Irish border, would cost it tens of "millions of pounds... rather than hundreds of millions".

"For us to lose the benefits of (EU) trade deals would be unwelcome, but it would be manageable," corporate relations head Dan Mobley told a parliamentary scrutiny committee in London.

Regarding the border between Ireland and Northern Ireland, Mobley said a hard border would affect transport costs.

"We are moving about 18,000 trucks a year over that border, so even small hold-ups to process those truck movements would be really unwelcome, but the big problem would be for our suppliers," Reuters cited Mobley as saying.

Last week, the trade body for drinks manufacturers and suppliers in Ireland said that a free moving cross-border supply chain was "essential" for the drinks industry. According to the Alcohol Beverage Federation of Ireland, Ireland's "all-island" drinks trade means companies operate in both Northern Ireland and the Republic of Ireland.

FREE TO READ - What just-drinks said about the spirits category - The review of 2017