After a Series of Sell-Offs, Diageo Closes A ‘Crucial’ 160-Year-Old Facility

Diageo shared that it was closing the facility in Hyderabad, India. The facility has existed for 160 years. (Photo: Sipa via AP Images)

Drinks-Intel reported on Friday that Diageo is closing a facility in Hyderabad, India, that has been owned by the spirits giant since 1970, and it is set to close in July. The Spirits Business reports the facility played a “crucial role” in economic growth within the area and has a history that dates back 160 years.

“Over the years, the unit has experienced significant challenges involving market dynamics and aging infrastructure,” a statement from United Spirits, the brand’s Indian arm, read. “In light of these challenges, the company is currently reviewing its internal business strategies, and no decisions have been made as of now. As part of the process, although there is currently no production activity, other essential activities, including regular maintenance of the plant and machinery and housekeeping of the entire unit, are being carried out in compliance with applicable regulatory requirements. Furthermore, the company wants to emphasize that it remains committed to the welfare of its workers and continues to provide wages during this period.”

In January, Diageo sold off Cacique Rum to the French spirits company, Bardinet. The latest sale followed the brand’s attempt to sell off Pimm’s liqueur. Diageo decided to ultimately keep the brand in November. The brand additionally sold Pampero Rum in July to Gruppo Montenegro, a brand known for Italian-made products like Amaro Montenegro and Rosso Antico Vermouth.

Even more troubling events suggest difficulties facing the supplier, and in November, Diageo paused construction on a $176 million facility for Crown Royal.

As for what remains in store for the 160-year-old facility, United Spirits issued the following statement:

“Any decisions regarding the future of the unit will be made in compliance with legal obligations, with careful consideration for the best interests and wellbeing of its workforce.”