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Category: Business and Industry
Date Submitted: 11/20/2011 07:41 AM
A Manufacturing Success Story for Ireland
The transfer of production to Ireland represents a significant boost for the St. James’s Gate site where Arthur Guinness started brewing his famous stout in 1759 and has resulted in a 50% increase in output from the brewery from the summer of 2005.
Overview
This study looks at: ◗ Diageo’s decision to consolidate its London and Dublin brewing operations into one location ◗ The benefits of this decision for the Irish economy
About Diageo
Diageo is the world's leading premium alcoholic drinks business. It is a Transnational Company (TNC) with a global vision, and local marketing focus. Diageo trades in some 180 countries around the world and is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). It had revenues of more than €13 billion in 2004, with operating profits of more than €3.8 billion.
Transferring Production
On the 15th of April 2004 Diageo announced that it intended transferring the brewing of Guinness for the UK market to the company’s historic St. James’s Gate brewery in Dublin. This followed a comprehensive review of its supply network. This indicated that, with some investment and process improvement, St. James’s Gate would be able to meet the needs of the UK market, in addition to the Irish and international markets it already supplies. This resulted in the closure of the Park Royal brewery in West London.
Business 2000
ninth edition
www.business2000.ie
1/4
2005/06
Diageo in Ireland
Diageo owns many of the leading alcohol beverages in the world, and importantly from an Irish point of view, it owns Guinness and Baileys. Diageo employs approximately 1,700 people in the Republic of Ireland and 500 people in Northern Ireland. Its operations in the Republic include: ◗ breweries in Dublin, Dundalk and Kilkenny; ◗ a state-of-the-art special ingredient production unit in Waterford to supplement the Dublin special ingredient plant; ◗ Baileys plants at Nangor...