Luck of the Irish?

Its a very un-American thought to think that Budweiser be brewed anywhere else in the world. While Bud has the right to sell it product to the masses, it should be crafted on US land with US water (US labor optional).

So the fact that is appears likely that Diageo will on Friday announce plans for restructuring its Irish Guinnessbusiness, is anti-Irish. This restructuring could potentially include closing most of its historic brewing site in Dublin.

The drinks group has been struggling with falling sales of Guinness in Ireland and the UK in recent years, and Paul Walsh, Diageo’s chief executive, has said "the stout’s future lies outside Ireland and Britain." For this blasphemous quote alone, the CEO whould be flogged and banned form every pub in the UK.

It is claimed that 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. However, with a 250 year history I am sure that the Crown can do something about the taxes. Additionally its a historical site, so why does the property value even come into play? Would walt say, "the price of land is too high in Anaheim, so lets move."

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. If taxes aren't an issue, and this is a pure greed thing, then sell your soul for a few pounds. The bottom line will not be affected that greatly, but Diageo has the chance to preserve history.

A better idea would be for Diageo to 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, and with leadership like this combined with poor marketing the stock price will continue to fall. It doesn't take an analyst to figure out that spirits are recession proof, and beer is cheap. It saddens me when corporations sell out simply for an uncertain buck. Does anyone think that the Nigerians will take pride in brewing Irish beer, no but they will get shitfaced.

Ireland has a rich tradition of making distilled beverages, I am not so sure if Nigeria has that same lore. Diageo need to look internally and realize that they can sustain market fluctuations, and there is no need to panic.