Diageo stands its ground on minimum pricing

Diageo today reaffirmed its opposition to proposals to introduce a minimum price system for alcohol in the UK.

Fresh from announcing a 2% drop in profits for the first half of the current fiscal year, chief executive Paul Walsh told a press conference in London: “I take the philosophical view that the government should be dealing with other, more important issues.”

His view was backed-up by Andrew Morgan, president of Diageo Europe, who said: “It’s a blunt instrument with which to try to reduce the level of harm of alcoholic drinks.

“It doesn’t seem to be an appropriate solution to a problem only caused by a minority of people.”

Walsh also confirmed that the drinks giant currently has no further plans to cut its cost base following the redundancies announced towards the end of last year.

“We have already announced all of the plans we currently have to reduce our cost base,” he said.

“By the time we exit this fiscal year all the cost-cutting measures should be complete. We have no plans to make any further announcements, but of course we have to remain flexible.”

Walsh also confirmed that Arthur’s Day – the celebration of the day Arthur Guinness signed the lease on his famous St James Gate brewery in Dublin – will now become an annual event following the global success of the initial Guinness 250 celebrations last September.

While the event will obviously be on a smaller scale to the global party enjoyed last year, the company hopes to create an annual marketing drive in a similar vein to that employed by Jack Daniel’s in the month of September to celebrate Jack Daniel’s birthday.

Alan Lodge, 11.20.2010