Diageo remains committed to licensed trade in wake of Scottish job loss plans

By Michelle Perrett

- Last updated on GMT

Diageo: Company reassures pub trade it remains committed to supplying “outstanding quality products”
Diageo: Company reassures pub trade it remains committed to supplying “outstanding quality products”

Related tags Scotland United kingdom Diageo

Diageo has moved to reassure the pub trade that it remains committed to supplying “outstanding quality products” following news that it plans to cut 100 jobs across its Scottish operations.

News of the changes came in the wake of a review of all Diageo’s supply operations globally designed to ensure the company puts its business on a sustainable footing for the future.

A Diageo spokesperson confirmed to The Morning Advertiser​ that it would remain committed to licensees.

“Following the disposal of our wine business and the subsequent end of the wine-bottling contracts, we have reviewed our spirits bottling footprint to ensure we not only deliver leading performance for both our domestic and export supply chains around the world, but also to strengthen our business for the future,” said a Diageo spokesperson.

“Regrettably, these changes may impact some roles in our European bottling plants towards the end of the year and we will now enter a period of consultation with our employees and their representatives to discuss the proposals in more detail.

“We are committed to our three spirits bottling sites in Europe – two in Scotland and one in Italy. The outcomes of this review will ensure we have the flexibility to respond to increased competition and external volatility, alongside testing and building the capability we need across our global supply chain to grow our brands."

Union GMB Scotland accused the UK Government of "a gross betrayal" of drinks manufacturing workers after Diageo announced the plans.

Workers and trade unions said they were informed that 70 redundancies would be made at Diageo’s Leven plant, in Fife, and a further 35 redundancies at its Shieldhall site, near Glasgow. 

GMB Scotland warned the UK Government’s Scottish secretary David Mundell earlier this year about the need for special measures to protect Scotland’s drinks manufacturing sector against the backdrop of Brexit uncertainty.

GMB Scotland organiser Louise Gilmour accused the Government of having been “asleep at the wheel”.  

She said: "We warned David Mundell and the UK Government about the possible impact of Brexit on the future of jobs across our drinks manufacturing sector and about the need for protective measures to safeguard an industry worth billions to the Scottish and UK economies.”



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