Future of new Kildare Guinness brewery now doubtful

A proposed €650m Guinness brewery may be in doubt after drinks firm Diageo announced a review of the project today.

The “centre of excellence” facility in Leixlip, Co Kildare, was expected to produce millions of pints of stout for international markets when it was completed in 2013.

However Diageo said today it was carrying out a re-evaluation of the project as a result of the global economic downturn.

Leixlip was the site of the first brewery opened by Arthur Guinness in 1755 before moving to St James’s Gate in Dublin in 1759.

“As result of the current difficult global economic situation, which affects both Ireland and the main international markets to be served by the new operations, Diageo has decided to conduct a re-evaluation of this brewing investment programme in order to ensure its scope remains appropriate in the changed economic environment,” said a statement.

“The evaluation is expected to run for several months and the outcome will be communicated to staff and other stakeholders as soon as possible.”

Diageo said it has a long-term strategy to ensure its Irish brewing operations are internationally competitive in support of its global beer strategy.

Guinness is marking its 250th anniversary this year and it recently relaunched previous advertising campaigns dating back several decades.

The facility, which is due to be called the Arthur Guinness Brewery, was billed as the biggest Diageo brewery in the world.

It would produce one billion pints of the black stuff every year from the 73-acre site.

Production from existing Guinness plants in Kilkenny and Dundalk was also due to be transferred there.

Guinness is sold in 150 countries worldwide and brewed in 50. Sales of the stout grew by 2.3% in Ireland in the 12 months up to last June despite a tumble of 7% the previous year.