Dairygold, Glanbia in talks to buy IAWS stake in Maltings Company

Dairygold and Glanbia have discussed buying out the stake held by IAWS in The Malting Company of Ireland Ltd, whose premises is located beside the South Link Rd in Cork City.

At present, Dairygold, Glanbia, and IAWS each holds a third-part ownership in the company, which in 2010 had a turnover of €7.6m, and generated profits before tax of around €22,500. Its profits in 2009 were a little over €550,000.

The Malting Company produces malt, which it sells to producers of beers and spirits. The company purchases around 40,000 tonnes of malting barley each year, which it supplies to customers such as Diageo and Irish Distillers.

While a relatively small element of the businesses operations of both Dairygold and Glanbia, The Malting Company business is likely to benefit from the expansion at the nearby Irish Distillers Pernod Ricard operation.

The €100m expansion will see the Midleton distillery increasing its purchasing of local ingredients. In all, the distillery spends over €60m annually on cereals, energy, capital projects, and payroll in the local economy.