Guinness Ireland, Diageo's brewing subsidiary, will make a decision soon on the future of the packaging plant in Dundalk, where almost 300 workers are in danger of losing their jobs.
Guinness Ireland managing director Mr Brian Duffy declined to reveal that decision in advance of an agreement with unions representing the workforce, but Guinness has previously said that the Dundalk plant has a far higher cost base than other locations.
Earlier this month, it emerged that a consultant's report had recommended that Guinness should re-examine its plan to close Dundalk. The company at the time expressed disappointment with the consultant's recommendation and the fact that the report did not offer any alternative solutions.
Mr Duffy said that, while the overall beer market in Ireland fell by 2 per cent in the period, draught Guinness increased its market share, rising to 42 per cent.
The fall in the beer market is attributed to the growth of ready-to-drink spirits products and the strong performance of cider, which is dominated in Ireland by C&C's Bulmers brand. Guinness introduced its Cashel's cider brand last year and Mr Duffy said that its growth in the first half was well ahead of target.
Overall Guinness volumes across the world rose by 3 per cent and export shipments of stout from St James's Gate were up by more than 20 per cent in the first half of the year. Mr Duffy said that exports account for more than half of the production in Dublin.
Meanwhile, R&A Bailey chief executive Mr Frank Fenn said yesterday the company was planning to recoup some of the £6.5 million (€8.3 million) invested in the failed ICON visitor centre and entertainment complex at Leopardstown Racecourse through the sale of the business.
"It's a lease arrangement with Leopardstown and we're bringing that to a close," said Mr Fenn. ICON was developed primarily for the tourist market. But the centre was forced to close after it failed to meet its visitor targets. The company's strategy has resulted in Baileys achieving its target of sales of five million cases annually, Mr Fenn said.
