Diageo mulls plans to sell historic St James’s Gate

A FINAL decision on the sale of the historic Guinness brewery site in Dublin is expected to be announced later this week.

Speculation mounted at the weekend that bosses with brewer Diageo will fly into the capital to decide the fate of St James’s Gate.

The 55-acre area facing onto the River Liffey in Dublin was once the largest brewery in the world.

Diageo began assessing investments in its brewing sites last year, including operations at its Kilkenny, Dundalk and Waterford plants.

Diageo’s managing director for global supply, David Gosnell, is heading up the review and is expected to fly over from London this week along with the group’s chief executive, Paul Walsh.

A company source yesterday confirmed an announcement is expected late in the week.

St James’s Gate produces about 12 million kegs of Guinness a year.

Industry experts say the company wants to put most of its processing into one plant, which could be based either in north or west Dublin outside the city.

The sale of St James’s Gate could net about €3 billion for Diageo.

While seen as the end of an era, it will still be expected to retain its Storehouse, which attracts more than 900,000 visitors a year, as well as several protected buildings.

A Diageo spokeswoman said: “We haven’t received a decision or an outcome. Nobody knows whether we’re selling, buying or moving.”

While Diageo employs about 2,500 staff here and in the north, the movement of its brewery sites could see some job cuts.

Diageo is also set to announce its profits for 2007 this week, which are expected to throw light on any potential financial pressure.

It is thought the sale of St James’s Gate could face a number of difficulties with its listed buildings and while considered the largest city centre site for sale, would not call time on its operations for at least two or three years.

The historic Dublin site was set up as a brewery by Arthur Guinness in 1759.

The National Conservation and Heritage Group intends to contact Diageo with concerns about how property is used at the site.

Its chairman Damien Cassidy said: “If they close it down, they might consider the heritage value of the buildings.”