Diageo opens renewable-powered Irish brewery to support Guinness growth

GOT

Diageo has opened a new brewery in County Kildare as it moves to increase beer production capacity and support rising demand for Guinness and other brands.

The Littleconnell Brewery represents an investment of about US$350m and is designed to run entirely on renewable electricity. The site forms part of Diageo’s wider plan to invest close to €1bn in Ireland between 2020 and 2029.

Guinness demand has continued to grow across international markets, while Guinness 0.0 has added another route for expansion. The new brewery gives Diageo more room to supply that demand and reduces pressure on its existing brewing network.

The company has also set out plans for further investment at the site. A second brewery is expected to focus on Guinness production and would add significant additional output over the next three years.

The facility was built on a 40-acre site in less than 18 months and will produce beer for Irish and export markets. It uses renewable electricity and efficient brewing systems intended to cut energy use, reduce water consumption and lower emissions. Diageo estimates the site can avoid up to 15,000 tonnes of carbon emissions a year compared with a conventional brewery of similar size.

The project also strengthens Diageo’s production flexibility. More brewing capacity in Ireland should help the company manage export demand, protect supply continuity and support its leading beer brands. The planned Guinness-focused expansion at Littleconnell adds to that position.

Global Opportunities Trust plc LON:GOT) invests globally in undervalued asset classes without reference to the composition of any stock market index.

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