Tánaiste Announces Government Support for Major R&D Investment Programme by Diageo Ireland

Diageo Selects Ireland as its Global R&D Centre of Excellence for Beer

Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan TD, announced today (Monday 8th December 2008) that the Government through Enterprise Ireland has approved support for a major investment programme by Diageo Ireland to expand its R&D activity at its Dublin operations. This strategic investment programme will position Diageo Ireland as the Global Centre of Excellence for all beer R&D for the Diageo Group. Over the next three years, Diageo will invest €24m in expanding its R&D activity across an extensive range of innovative project areas.

This investment will be underpinned by a management development initiative to lead the development of the R&D Centre and drive the delivery of the new projects. These R&D projects are expected to contribute to increasing net sales value by €250m over three years with a significant percentage of this coming from export sales, making a major contribution to growing exports from the Irish economy.

Making the announcement, Tánaiste Coughlan welcomed this flagship investment by Diageo to position Ireland as a centre of R&D excellence and one of its four Global Technical Centres. “This is a highly strategic investment programme on behalf of Diageo, and the Government is very pleased to support it through Enterprise Ireland. This project makes the Dublin operation the innovation core of Diageo’s R&D activity within the Global Beer Technical Centre, and signals the very high value the company places on Ireland for its innovative capability, the quality of its research and development and as a provider of innovative, market-led products that can drive the growth of Diageo worldwide”, she said.

Speaking on behalf of Diageo Ireland, Dr. Frank Lynch, Technology & Development Director at the Diageo Global Beer Technical Centre, said: “This investment programme at St James’s Gate in Dublin is critical for both the Diageo Group and for Diageo Ireland. It will directly contribute to achieving the growth targets set out in the Diageo PLC strategic plan for sales growth and market expansion in beer, and as such places Dublin right at the centre of our international growth strategy”. Outlining the scale of the planned investment programme, he said the proposed R&D initiatives spanned a wide range of innovative project areas including:

• Researching new brewing materials
• Beer Concentrate Process Technologies, which are critical for market development
• Brewing Technologies
• Liquid Product Development, for both alcoholic and non alcoholic beverages
• Developing new Packaging and Dispensing Solutions.

“We are delighted”, commented Christian von der Heide, Technical Director, Global Beer, “with the support that we have received from Enterprise Ireland; the support is also very timely as we enter 2009, the year which marks the 250^th anniversary of the signing by Arthur Guinness of the original lease on the St James’s Gate site, and begin the journey towards the next 250 years for the Guinness ® brand.”

Welcoming the announcement by the Tánaiste, Dick Lenehan,Manager, Food Sector, in Enterprise Ireland, said:“Diageo has again demonstrated its commitment to its Irish operation. This investment in setting up a Global Centre of Excellence in Dublin follows on the company’s announcement earlier this year to invest over €650m in constructing a new brewing facility in Leixlip, Co Kildare and in upgrading the St James’s Gate brewery in Dublin. In 2005 all production was transferred from the Park Royal brewery in London to Dublin, and the Guinness brand administration function was also relocated here. Taken with today’s announcement, this all points to a major commitment by Diageo Plc to Ireland, both as a leading centre of manufacturing and of innovation for Diageo worldwide”, he said.

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About Diageo

DIAGEO PLC

Diageo is the world's leading premium drinks business. With its global vision, and local marketing focus, Diageo brings to consumers an outstanding collection of beverage alcohol brands across the spirits, wine and beer categories including Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, Captain Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageo trades in some 180 countries around the world and is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands and performance, visit us at www.diageo.com.

Diageo is committed to responsible drinking through: setting world-class standards in responsible marketing, promotion and innovation; promoting a shared understanding of what responsible drinking means, and working with others to combat alcohol misuse.