In recent weeks, we got a degree of insight into the kinds of pressures being exerted on the Government over some of its proposed public health policies in relation to alcohol.
In an interview in the Sunday Business Post recently, Diageo’s country director in Ireland, David Smith, talked about scaling back the company’s operation here if we became what he called, somewhat ironically perhaps for Guinness drinkers, a “dark market”.
The logic proposed was that a negative business environment for Diageo’s products could be created if the Government followed through on proposed legislative changes in relation to alcohol sponsorship of sporting events.
“If our Irish business is diminished by this, there is less need to invest. If we don’t have the freedom we need in Ireland, we will pull back,” Smith said.
It was an extraordinary threat, and Smith went on to talk about the Government being involved in “political headlines” in relation to its alcohol policies. In the days after these comments, Diageo was keen to deny that the sponsorship ban would lead to a scaling back of operations here, but the company’s corporate affairs director for western Europe, Peter O’Brien, told RTÉ’s Morning Ireland that it would be difficult for them to win business and investment for Ireland “if we have an environment that is very, very anti-alcohol”.
The comments were made on the back of a €3 million investment plan for the Smithwick’s visitor centre in Kilkenny, and over a year since Diageo decided to invest €153 million in St James’s Gate Brewery. The implications were clear: Diageo remains committed to Ireland, as long as Ireland remains committed to Guinness being good for us.
Source: Brian O'Connell, Irish Times, 03/07/2013
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