Saturday, February 27, 2010

Nigeria has overtaken Ireland to be the Biggest Market for Guinness.

Guinness has been made for nearly 250 years at the St James’s Gate brewery in Dublin, but rising property values have led Diageo to consider selling the site.

Estimates put a value of up to €1bn (£787m) on the 56-acre Dublin site on the south quays of the river Liffey. The Dublin brewery produces some 500m litres of the stout every year, half of which is exported.

Diageo may build a new brewery on a site at Balbriggan, north of Dublin, while keeping some activity at St James’s Gate as a tourist attraction.

Diageo on Thursday said in a trading update that its sales were in line with expectations, with organic sales rising 7 per cent in the nine months to March 31. The company is sticking with its previous guidance of 9 per cent growth in full-year operating profits for the year to June 30.

Analysts said the guidance showed Diageo remains confident of withstanding  a downturn in consumer spending in the US, the world’s biggest spirits market.

Diageo’s shares fell 14p to £10.28.

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