Diageo announces restructuring of supply operations

published 11 March 2013

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.

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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.

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