Diageo, the British food and drink conglomerate whose Guinness plants in Co Louth are to shed 290 jobs, will today announce that it is combining its spirits business with its brewing division. It will also reveal the details of a $10.5 billion deal involving its US food arm.
As expected, Pillsbury will merge with General Mills of the US in a transaction that values the former at $10.5 billion and will leave Diageo with a third of the new entity.
But the combination of the UDV spirits business with Guinness brewing suggests that the refocusing of Diageo will cease after the spin-offs of Pillsbury and its Burger King fast-food chain. Diageo is hoping to reap big savings from combining the sales forces, marketing and consumer research operations of the two drinks divisions. UDV makes 16 of the world's top 100 spirits brands including Johnnie Walker whisky, Smirnoff vodka and Gordon's gin.
The revelation last Friday that the Guinness would make 290 workers redundant at its brewery and packaging plant in Dundalk came just two months after the company said it was cutting 100 marketing jobs at its marketing division at St James' Gate in central Dublin.
A review of operations at the brewery at St James' Gate and at plants in Kilkenny and Waterford is ongoing, but will take several months to complete.
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