11 September 2008 - Diageo Ireland is today announcing that it has entered into agreements to acquire a 73-acre greenfield site in Leixlip, Co. Kildare with the intention to build a new state-of-the art brewery. The proposed site has important historical links to Arthur Guinness and his first brewery. This development represents the next stage of the Euro 650million (£520million)* capital investment in its brewing operations in Ireland announced by Diageo plc in May 2008.
It is anticipated that the new brewery will be completed by 2013 and will be called the ‘Arthur Guinness Brewery’. Once commissioned, the new brewery - in conjunction with the remodelled St. James’s Gate brewery - will transform Diageo Ireland’s current brewing operations into a two-brewery centre of excellence to support the growth and development of its domestic and global beer business.
In addition to being the optimum location for the new brewery’s operational requirements, the site has important historical and heritage links to Guinness. Arthur Guinness established his first brewery in Leixlip in 1755 before moving to St. James’s Gate in 1759. Most of the proposed site (c.50 acres) will be purchased from the Guinness family, direct descendents of Arthur Guinness.
The remaining c.23 acres of the site will be purchased, subject to Council approval from Kildare County Council.
The proposed site is 9miles (14km) from St. James’s Gate and adjoins both the N4 motorway and the River Liffey. Construction of the new brewery on this site will be subject to usual site due diligence enquiries and normal planning and regulatory approvals. The new brewery will be constructed to the highest international standards of quality, efficiencies and environmental practice. This will be the biggest Diageo brewery in the world and the largest in Ireland.
Commenting on the announcement, Brian Duffy, Guinness Global Brand Director and Chairman of Diageo Ireland said, ‘This site announcement is a truly significant decision by Diageo. Not only are we demonstrating our commitment to Ireland, we are also staying true to the roots and heritage of the Guinness brand and Arthur himself. A new world-class brewery built in a location with such close historical links and with the full support of the Guinness family, is a remarkable milestone in the life of a remarkable brand and something I feel that only Diageo with its sense of heritage and tradition would do.’
Mr. Gerry O’Hagan, Supply Director for Guinness and Baileys added, ‘The choice of the location of the new brewery follows an extensive due diligence and site selection process. The new brewery is part of the single biggest capital investment made by Diageo in its supply infrastructure since the company’s creation 10 years ago and will enhance the cost competitiveness of our global beer operations. It represents a major vote of confidence in our beer business here in Ireland as a global brewing centre of excellence for our company. We will now progress planning approval for the site as quickly as possible.’
Mr. O’Hagan thanked both the IDA and Enterprise Ireland who worked with Diageo to identify and secure the most suitable property solution for the new brewery.
Commenting on the announcement Mr. Desmond Guinness said, ‘We are absolutely delighted that the new Arthur Guinness brewery will be built on Guinness land here in Leixlip. It is wonderful to know that the strong historical roots between the Guinness name and Leixlip will endure for generations to come’.
When the new Leixlip brewery is commissioned in 2013, all production from Kilkenny and Dundalk breweries will be transferred. The new brewery will produce Guinness to meet growing export demands and will also brew ales and lagers with a capacity of 5m hectolitres. It will use the same brewing ingredients - yeast, hops and barley and same water supply as St. James’s Gate and will be brewed using the same traditions of craftsmanship. The remodelled St. James’s Gate will continue to brew Guinness beer primarily for the Irish and British markets and will be the second largest brewery in Ireland with a brewing capacity of 3mHL.