Guinness fears for jobs over smoke ban

Business Correspondent

Yesterday, Guinness brewers Diageo Ireland reported preliminary results for the year to the end of June, which indicated that net sales of 970 million remained static for the year. However, compared to the same period last year operating profits of 214m were down 9% on an organic basis.

Diageo Ireland managing director Brian Duffy said: “Diageo Ireland’s performance reflected a decline in consumer confidence and weakening economic circumstances. This has resulted in a deterioration of the beverage alcohol market in Ireland.”

Questioned about the proposed smoking ban, Mr Duffy said there was potential for a negative impact on both sales and jobs.

“There could be a significant impact on sales. It is impossible to quantify at this stage, we are looking for data on this, but the potential is significant,” he said.

Diageo Ireland employs 2,600 people throughout the country.

Mr Duffy said Diageo, which includes Guinness, Baileys, Budweiser, Carlsberg, Smirnoff and Johnnie Walker in its Irish product portfolio, is not providing financial support to any of the lobby groups opposing the ban.

“We have no plans to meet the minister. I hope a solution can be worked out between the trade and the minister,” he added.

Commenting on Diageo Ireland’s performance Mr Duffy said: “Diageo Ireland continues to be the market leader in the major categories of stout, lager, ale, vodka, ready-to-drink and cream liqueurs. While there are significant challenges in the face of the weakened market conditions, we continue to invest in the quality and marketing of our premium range of brands.