Diageo adds €13.2bn to Europe’s economy

Johnnie Walker maker Diageo contributes more than €13 billion (US$14bn) to Europe’s economy every year, a new report has revealed.

The Diageo’s Economic Impact in Europe report by Oxford Economics found that the London-headquartered drinks company added €13.2bn (US$14.2bn) in gross value in 31 European countries, including Switzerland, the UK, Turkey and Norway.

For every €1 Diageo received in net sales, it supported a contribution of €3.60 to the GDP of Europe.

Jake Kuyer, associate director at Oxford Economics, said: “Diageo is an industry leader that generates significant economic impact through its operations in Europe. This has a ripple effect that benefits other industries, with manufacturing, transport, tourism, hospitality, and agriculture all benefiting from its operations, meaning that Diageo’s value is felt across the entire economy.”

Diageo said it earned €3.7bn (US$4bn) in net sales in 31 European countries in 2022.

In Europe, Diageo employs almost 9,000 full-time staff across 22 countries.

The report found that Diageo contributes 200,000 jobs annually to the nation’s economy. The study claimed that the company’s employees are 4.1 times more productive than the average European worker in terms of contribution to GDP.

For each person employed by Diageo, a further 8.7 full-time jobs were supported by its supply spending.

The report also noted that spirits trade between 31 European countries and the rest of the world accelerated by 54% in the 10 years to 2022.

John Kennedy, Diageo’s Europe president, added: “This report showcases the true extent of Diageo’s significant economic and social impact across the region and demonstrates how important the drinks and hospitality industry is to the economic success and future prosperity of Europe.”

“Europe has always been an important region for Diageo and is home to many of our iconic global brands such as Johnnie Walker and Guinness. As a result, we are proud to be constantly strengthening the partnerships across the region that provide outstanding value to the wider economy through our direct and indirect investment, collaboration and innovation.”

The company operates 30 distilleries in Scotland, a brewery and distillery in Dublin, and maturation and packaging facilities across the UK, and in Italy. Diageo also manages marketing and supply excellence centres in the Netherlands, and a business hub in Hungary.

Diageo saw organic net sales drop by 0.6% in the first half of fiscal 2024, with revenue in Europe rising by 3%.