Diageo likely to keep Smithwick's and Harp for time being

The future of brands such as Smithwick’s and Harp repeatedly come under the spotlight from investors.

Smithwick’s and Harp appear likely to be kept for the time being by global drinks giant Diageo. Their production is still set to transfer as planned out of St James’s Gate in Dublin to the new brewery in Co Kildare, when the €200m facility is built.

News website Axios reported Diageo was set to sell off its Irish-based Smithwick’s, Kilkenny, and Harp Lager, as well as Tusker beer in Kenya. Axios said Diageo was concerned about the margins generated by some of its beer brands. A Diageo spokesperson said it does not comment on speculation.

The future of brands such as Smithwick’s and Harp repeatedly come under the spotlight from investors because they do not make the cut as either ‘global giants’ or ‘local stars’ by Diageo. Its global giant brands include Guinness, Johnnie Walker, Smirnoff, and Baileys.

The local stars include Buchanan’s, JeB, Black & White, and Shui Jing Fang. Beer sales of €3.9bn accounted for 14% of total sales at Diageo for the latest financial year, with spirits accounting for a share of 81% of sales.

Diageo had submitted planning permission last year for a brewery in Newbridge, Co Kildare, and plans to transfer production of Smithwick’s, Rockshore, Harp, Hop House 13, and Kilkenny, to the new €200m facility. It has also invested in St James’s Gate in Dublin and at its major beer packaging plant in Belfast.