Diageo announces restructuring of supply operations
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.
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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
The best houses for sale with wildflower meadows
The best houses for sale with wildflower meadows – from a 1770s mill house in Petersfield, Hampshire, to a cottage in Fittleworth, West Sussex
By Natasha Langan Published
-
Will a Santa Rally bring festive cheer to investor portfolios this year?
Investors will be hoping for a seasonal stock market boost in December
By Marc Shoffman Published