Guinness threat to jobs over alcohol ban
Dark market threat could reduce investment
“No need for Guinness to be brewed here”
One of the major companies likely to be affected by a ban on alcohol sponsorship of sport has shot a warning to Government that Diageo, makers of Guinness, could reduce operations in Ireland if legislation was introduced that hampered its ability to operate.
Speaking in the Sunday Business Post newspaper, Country Manager David Smith said the threat of Ireland becoming a ‘dark market’ in sports sponsorship would be prejudicial to its interests as a global company.
“There is no need for Guinness to be brewed in Ireland, or for Baileys to be manufactured here and if we don’t have the freedom we need in Ireland then we will pull back.”
He talked of the importance of the drinks industry here in terms of jobs and exports saying ‘We want Ireland to be the right place to innovate and invest. Traditionally drinks export has been a jewel industry here.”
“Consumption of alcohol in Ireland has dropped 19% over the past ten years,” he added. “We need to continue working to address misuse, but these bans will not work. They are political headlines and risk doing a lot of damage to the economy. It will take a lot of energy to come back from that.”
The resistance to a proposed ban on alcohol sponsorship, which would exclude the arts but include sports, has largely to date been led by the sports governing bodies.
They have presented arguments based on the health and fitness programmes enabled by an estimated €35 million annual contribution by companies in the drinks sector.
In Sport for Business we have put forward alternative suggestions which would rely on health promotion budgets being used as a replacement in the event of any ban, looking for the same net benefit for society, at around the same funding, as has been applied to the work of the Road Safety Authority.
The economic argument on behalf of sport has been difficult to gain traction on, with opponents relying on a principle based approach to the issue, and the cost of alcohol misuse in human and social terms.
It may well be though that the ace card in a battle to delay or prevent the imposition of a ban may be that of a threat to jobs and investment that currently supports €1 billion in export value and 62,000 jobs across the country.
Rugby, Gaelic Games, Soccer and Horse Racing would all be impacted by a ban on alcohol sponsorship as is currently being proposed.
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Diageo threat to jobs over drinks ban
