Diageo ups security after fake drink scam

Diageo has stepped up security measures in Northern Ireland after it emerged that the IRA is believed to be behind a professionally run distribution network for supplying counterfeit spirits to pubs and clubs.

Police raids on illegal distilleries have uncovered machinery that is able to produce high-quality counterfeit goods including Smirnoff Red Label vodka.

In December, Irish Revenue Customs officers seized an illegal distillery and equipment on a farm in Cooley, County Louth. Officers seized 1,500 litres of pure alcohol with a potential loss of revenue amounting to e74,000. The distillery had the capacity to distil alcohol with a revenue loss of approximately e3m per year. Equipment seized included bottling and capping machinery, counterfeit labels and various brands of counterfeit vodka.

Police believe the IRA has its own quality-control unit and relies on industrial espionage to ensure it is up-to-date on the latest equipment and to obtain exact product recipes.

Diageo public relations manager Paul Flanagan said: "We are firmly committed to protecting the integrity of the Smirnoff brand. We will continue to work with all elements of the drinks trade in Northern Ireland and with others to protect the trademark, and ensure that consumers can continue to have full confidence in our products."