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Drinks

Diageo Contributes €13bn Annually To Europe's Economy, Study Finds

By Dayeeta Das
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Diageo Contributes €13bn Annually To Europe's Economy, Study Finds

Drinks giant Diageo contributes over €13 billion to Europe’s economy every year, creating jobs for over 200,000 people, a new report from Oxford Economics showed.

The maker of Johnnie Walker, Smirnoff, Baileys and Guinness provides one of the highest value-adds per job relative to the company's size or scale compared with other parts of the total beverage alcohol sector, according to the report.

The sector offers huge growth potential with the EU27+’s (31 countries across continental Europe and the British Isles) spirits trade with the Rest of the World accelerating by 54% between 2012-2022.

Although only one in five alcoholic beverages consumed in the EU+ are spirits, the category contributed €2 in every €5 in export growth from the region, with Diageo playing a key part.

'An Industry Leader'

Jake Kuyer, associate director at Oxford Economics, commented, “Diageo is an industry leader that generates significant economic impact through its operations in Europe.

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“This has a ripple effect that benefits other industries, with manufacturing, transport, tourism, hospitality, and agriculture all benefiting from its operations, meaning that Diageo’s value is felt across the entire economy.”

The report, Diageo’s Economic Impact in Europe, found that Diageo added €13.2 billion in gross value to the economy.

It includes the upstream impacts from its suppliers and downstream impacts through the distribution and sale of their products in shops, bars, restaurants, and hotels.

For every €1 Diageo received in net sales, it supported a contribution of €3.60 to the GDP of Europe, the report noted.

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'Significant Economic And Social Impact'

John Kennedy, Europe President at Diageo, commented: “This report showcases the true extent of Diageo’s significant economic and social impact across the region and demonstrates how important the drinks and hospitality industry is to the economic success and future prosperity of Europe.”

Diageo’s employees are 4.1 times more productive than the average EU27+ worker in terms of contribution to gross domestic product, the study claimed citing data that for every person employed directly by Diageo in 2022, a further 8.7 full-time jobs were supported by its supply spending.

The company employs around 9,000 full-time equivalent staff across 22 countries in the EU27+. It operates 30 distilleries in Scotland; a Dublin-based brewery and distillery; and maturation and packaging facilities in Scotland, England, Ireland and Italy.

In addition is has marketing and supply excellence centres in the Netherlands, a business hub in Hungary, and a global headquarters in central London.

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