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Diageo Commits Additional €400m to Expand Kildare Brewery as Guinness Demand Grows

Diageo has announced a further €400 million investment in its brewery at Littleconnell, Co Kildare, strengthening the company’s long-term production strategy for its global beer portfolio, including Guinness.

The facility, which officially opened on Tuesday, follows an initial investment of nearly €300 million and is already producing lagers and ales such as Hop House 13 and Smithwick’s. The site was built with the help of around 650 construction workers and now employs just over 50 permanent staff.

The drinks giant said the expansion marks a continuation of its broader €1 billion capital investment programme between 2020 and 2029, which also includes upgrades to its historic St James’s Gate brewery in Dublin and its packaging operations in Belfast.

When the Kildare project was first announced in 2022, Diageo said it would ease production pressure on St James’s Gate, allowing the Dublin site to focus more heavily on Guinness and Guinness 0.0. The latest plans go a step further, with a second brewery now set to be developed at Littleconnell specifically for Guinness production aimed at export markets.

Colin O’Brien, Diageo’s head of global beer supply, said the expanded facility would play a key role in meeting rising international demand. He said St James’s Gate would continue to serve Ireland, the United Kingdom and the United States, while the Kildare site would support growth in emerging and established overseas markets.

“We will continue to make Guinness for Ireland, the UK and our major US market in St James’s Gate,” O’Brien said. “This new brewery will help support growth in developing markets around the world.”

The announcement comes at a time when Diageo has reported mixed trading conditions, with recent results showing a decline in North American sales. However, the company said Guinness has continued to perform strongly across global markets, helping offset wider pressures in the drinks sector.

O’Brien said the brand remains central to Diageo’s strategy, particularly as the company navigates tariff challenges and shifting consumer demand. He said ongoing investment would help improve efficiency and limit cost pressures for consumers.

Diageo’s incoming chief executive Dave Lewis is expected to set out a wider turnaround strategy in August. Known for cost-focused leadership roles at Unilever and Tesco, Lewis is anticipated to review the company’s operations, although senior management stressed that Guinness will remain a core priority.

O’Brien dismissed speculation that Diageo could separate Guinness from its wider portfolio, saying the company’s global structure has supported strong performance. He said continued investment in production capacity demonstrates confidence in both the brand and its long-term growth potential.

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