Diageo plays down Guinness shortage as strike planned for Belfast

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Workers have voted to strike at Diageo’s production plant in Belfast but the drinks giant insists there will be no shortages of Guinness ahead of Christmas.

Unite claimed today (28 November) that the Belfast site produces the zero-alcohol variant of Guinness as it announced around 90 workers have agreed to walk out for eight days from 5 December, what the union said was a response to an “inadequate pay offer”.

Despite Unite’s claims, Just Drinks understands that the Belfast facility at Marshalls Road does not produce Guinness and is used as a canning plant.

Guinness fans may well reminisce, harking back to last December when Diageo experienced an upsurge in sales partly linked to key sporting events, resulting in weekly limits imposed on supplies to UK customers.

While Unite regional officer Michael Keenan suggested today that the Belfast factory “is the world’s biggest producer of Guinness Zero and this strike action will severely disrupt production lines in the run-up to Christmas”, Diageo played down those claims.

“There will be no disruption to the supply of Guinness or Guinness 0.0 over the Christmas period,” a Diageo spokesperson said via a statement. “We have contingency plans in place to manage any potential impact at our can packaging site in Belfast.”

Unite added in a statement that staff are demanding a “substantial” pay increase to close the gap with what Diageo employees are getting at its factory in Runcorn, Cheshire, located in the south-west of England.

Sharon Graham, general secretary for Unite, said: “Diageo is one of the largest and most profitable drinks companies in the world. It can fully afford to make workers a decent offer but has chosen to put profits before people.”

Unite had not responded to a request from Just Drinks to clarify what both sides were asking for and whether further talks were planned ahead of the strike action next week.

Diageo also did not address the finer details behind the negotiations when asked by this publication. However, both parties apportioned blame.

“While we are disappointed by the outcome of the ballot for industrial action at our can packaging site in Belfast, we strongly believe that continued engagement is the best way of securing a resolution that recognises employees for their valued contribution, while ensuring the long-term competitiveness of the site,” the Diageo spokesperson said.

Regional officer Keenan suggested the Diageo’ “management needs to stop disrespecting our members and return to the negotiating table with an offer that meets workers’ pay expectations”.

Despite the speculation around Guinness today, production is set to get a boost from a new production site in County Kildare on the island of Ireland that is due to come on stream early in the new year after Diageo announced a plan in August to extend capabilities to the brand’s zero variant.

When the plans for the facility in the town of Littleconnell were first revealed in 2022, the drinks giant had earmarked the site for the production of lager and ales.

On a more pessimistic note, Diageo revealed in September that it may cut some commercial roles at its Northern Ireland business and switch those posts to India. Just Drinks understood at the time that around 60 positions would likely be affected, mainly among the company’s customer support teams.

As the new year slowly approaches, Diageo is also poised to get a new CEO in the form of ex-Tesco boss Sir Dave Lewis to replace the departed Debra Crew. Before he joins in January, CFO Nik Jhangiani is acting CEO on an interim basis.

"Diageo plays down Guinness shortage as strike planned for Belfast" was originally created and published by Just Drinks, a GlobalData owned brand.

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