Liquor giant Diageo said an overhaul of its global supply operations will lead to cost savings of 60m pounds per annum over the next three years.
The world's largest distiller will reduce its regional operations and transfer responsibility for local services to 21 key markets.
The cost of the restructuring will amount to about £100m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The maker of Guinness, Johnnie Walker and Smirnoff added the recent acquisitions of local liquors in China, Turkey and Brazil had changed supply dynamics.
"This change follows the reshaping of the in-market organisations through the implementation of the 2011 operating model review and is a consequence of Diageo's increasing presence in new faster growth markets," the company said in a statement.
Shares climbed 0.55% to 2,005.00p.
RD
-
UK house prices rose 6.4% over the past 12 months – will there be a property market surge?The Land Registry house price index reveals the average property price reached £271,000 in March. Some experts think this could be a ‘new growth phase’
-
Angela Rayner secret tax memo to Rachel Reeves: could these tax hikes become a reality?As details emerge of a memo sent by Rayner to Reeves calling for a £4 billion tax raid on savers and investors, experts fear some of them might make an appearance in the Autumn Budget
