Irish Whiskey Company (IWC) has entered into an agreement with Diageo to buy Great Northern Brewery in Dundalk, Ireland for an undisclosed amount.
The brewing facility will be transformed into a distillery and will be used to supply whiskey to the private label, bulk sectors and the emerging craft distillery sector.
For the transformation, IWC will spend around €35m for a period of over four years. It will cover the purchase price, building costs and general working capital for the site, which will be renamed to Great Northern Distillery.
Following the handover of the facility, Diageo will move its brewing operations to St James's Gate in Dublin in September 2013.
IWC director John Teeling said Irish Whiskey sales continue to grow at double digit rates - a trend that is expected to continue.
"As the industry grows segments emerge. IWC will supply segments not currently served at all or at best poorly served. Dundalk will be an efficient, low cost quality distillery," Teeling added.
"The focus will be on supplying grain whiskey to pot still distilleries while grain and malt and pot still whiskeys will be supplied as private label products to large retailers worldwide and as bulk whiskey to companies wishing to develop their own brands."
Diageo International Supply Centre supply director brewing Paul Armstrong said Diageo is delighted that the Great Northern Brewery site is being acquired by IWC.
"This is a vote of confidence in Dundalk and will help to ensure that the town remains an important economic hub in the north east. Diageo will now begin the process of making the site environmentally safe for the handover," Armstrong added.
The facility is expected to be fully operational as a whiskey-producing site by summer 2014 and will produce its first whiskey by 2018.
The brewing facility will be transformed into a distillery and will be used to supply whiskey to the private label, bulk sectors and the emerging craft distillery sector.
For the transformation, IWC will spend around €35m for a period of over four years. It will cover the purchase price, building costs and general working capital for the site, which will be renamed to Great Northern Distillery.
Following the handover of the facility, Diageo will move its brewing operations to St James's Gate in Dublin in September 2013.
IWC director John Teeling said Irish Whiskey sales continue to grow at double digit rates - a trend that is expected to continue.
"As the industry grows segments emerge. IWC will supply segments not currently served at all or at best poorly served. Dundalk will be an efficient, low cost quality distillery," Teeling added.
"The focus will be on supplying grain whiskey to pot still distilleries while grain and malt and pot still whiskeys will be supplied as private label products to large retailers worldwide and as bulk whiskey to companies wishing to develop their own brands."
Diageo International Supply Centre supply director brewing Paul Armstrong said Diageo is delighted that the Great Northern Brewery site is being acquired by IWC.
"This is a vote of confidence in Dundalk and will help to ensure that the town remains an important economic hub in the north east. Diageo will now begin the process of making the site environmentally safe for the handover," Armstrong added.
The facility is expected to be fully operational as a whiskey-producing site by summer 2014 and will produce its first whiskey by 2018.
