A recent report from Oxford Economics reveals that Diageo, a global leader in beverage alcohol, is making a significant contribution to Europe’s economy. The company, known for brands such as Johnnie Walker, Smirnoff, Baileys, and Guinness, is contributing over €13 billion and 200,000 jobs every year to the region.
Diageo is a prominent player in the spirits sector, providing one of the highest value-adds per job in the beverage alcohol industry. Despite the challenging economic environment, the spirits industry offers substantial growth potential, with the EU27+’s spirits trade with the Rest of the World growing by 54% between 2012 and 2022.
The study highlights the impact of Diageo’s operations on the EU27+ and the value the company adds to Europe’s economy as part of the wider spirits’ sector. Diageo has added €13.2 billion in gross value, including the upstream impacts from its suppliers and downstream impacts through the distribution and sale of their products in shops, bars, restaurants, and hotels.
The productivity of Diageo’s employees is also emphasized, as they are 4.1 times more productive than the average EU27+ worker in terms of contribution to the gross domestic product. Additionally, for every person employed directly by Diageo in 2022, a further 8.7 full-time jobs were supported by its supply spending.
John Kennedy, Europe President at Diageo, remarked on the company’s significant economic and social impact across the region, emphasizing the importance of the drinks and hospitality industry to Europe’s economic success and future prosperity.
Jake Kuyer, Associate Director at Oxford Economics, commented on the ripple effect of Diageo’s operations, benefiting other industries such as manufacturing, transport, tourism, hospitality, and agriculture, thus contributing to the entire economy.
Diageo’s presence in Europe is indeed substantial, with almost 9,000 full-time equivalent staff employed across 22 countries in the EU27+. The company has various facilities across the region, contributing to the generation of value for the economy.
It’s worth noting that Europe has been a crucial region for Diageo, serving as an exporting hub for its products distributed in nearly 180 countries. As such, the company’s extensive supply footprint in Europe has a rich history and continues to play a significant role in the global market.
In conclusion, Diageo’s impact on Europe’s economy is undeniable, and the company’s contributions are felt across various industries, making it a vital player in the region’s overall economic landscape.
