9th May 2008 09:00
Diageo PLC09 May 2008 9 MAY 2008 DIAGEO TO CREATE WORLD-CLASS BREWING FACILITIES IN IRELAND Following a comprehensive review of brewing operations in Ireland, Diageo hastoday announced a proposal to create world-class brewing facilities in Irelandover the next five years to support the growth and development of Diageo'sglobal beer business. The proposal includes: • The investment of £520 million between 2009 and 2013 to renovate the world famous St. James's Gate brewery and to construct a new multi-product brewery close to Dublin.• The closure of two smaller breweries at Kilkenny and Dundalk.• The release of surplus land, between 2013 and 2015, on parts of the St James's Gate site as well as in Kilkenny and Dundalk, with an estimated current value of approximately £400 million. The renovated St. James's Gate brewery will brew Guinness primarily for theIrish and British markets and the new brewery will produce Guinness to meetgrowing export demand and ales and lagers for the Irish market. These twobreweries will be designed to operate to the highest quality, operational andenvironmental standards. When the new brewery is commissioned in five yearstime, production from the existing breweries in Kilkenny and Dundalk will betransferred, resulting in the closure of these facilities. The GuinnessStorehouse, Ireland's most popular tourist attraction, will continue to be basedat St. James's Gate. The new breweries will enhance the cost competitiveness of Diageo's globalbrewing operations when the new facilities are commissioned in 2013. At thatpoint there will be a net reduction in staff of around 250. It is currentlyestimated that one off cash costs relating to the restructuring of Diageo'sIrish brewing operations will total approximately £120 million. These will betreated as an exceptional cost mainly in the fiscal year ending 30 June 2008. Inaddition accelerated depreciation in respect of plant and equipment will beprovided as an exceptional item over the period of the closure of thefacilities. Paul Walsh, Chief Executive of Diageo plc, said: "Over the last twelve months we have conducted a rigorous review of our brewingoperations in Ireland. It examined many options and I believe it has identifiedthe right formula for the long-term success of our business in Ireland and forthe continued global success of the Guinness brand. Our ambition is to combinethe most modern brewing standards with almost 300 years of brewing tradition,craft and heritage." - ends - Contacts Investor Enquiries UK +44 (0)20 7927 4267US +1 202 715 1110 Media Enquiries James Crampton +44 (0)20 7927 [email protected] Isabelle Thomas+44 (0)20 7927 [email protected] Forward-looking statements This document contains certain forward-looking statements within the meaning ofSection 27A of the US Securities Act of 1933 and Section 21E of the USSecurities Exchange Act of 1934. These forward-looking statements can beidentified by the fact that they do not relate only to historical or currentfacts. In particular, all statements that express forecasts, expectations andprojections with respect to future matters, including trends in results ofoperations, margins, growth rates, overall market trends, the impact of interestor exchange rates, the availability of financing to Diageo, anticipated costsavings or synergies and the completion of Diageo's strategic transactions, areforward-looking statements. By their nature, forward-looking statements involverisk and uncertainty because they relate to events and depend on circumstancesthat will occur in the future. There are a number of factors that could causeactual results and developments to differ materially from those expressed orimplied by these forward-looking statements, including factors that are outsideDiageo's control. All oral and written forward-looking statements made on orafter the date of this document and attributable to Diageo are expresslyqualified in their entirety by the 'risk factors' contained in Diageo's annualreport on Form 20-F for the year ended 30 June 2007 filed with the US Securitiesand Exchange Commission (SEC). Any forward-looking statements made by or onbehalf of Diageo speak only as of the date they are made. Diageo does notundertake to update forward-looking statements to reflect any changes inDiageo's expectations or any changes in events, conditions or circumstances onwhich any such statement is based. The reader should, however, consult anyadditional disclosures that Diageo may make in documents it files with the SEC. All readers, wherever based, should take note of these disclosures. Theinformation in this document does not constitute an offer to sell or aninvitation to buy shares in Diageo plc or any other invitation or inducement toengage in investment activities. Past performance cannot be relied upon as aguide to future performance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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