Diageo contributes over €13 billion and 200,000 jobs every year to Europe’s economy, according to a new report from Oxford Economics.
According to the report, Diageo is a leader in the spirits sector which provides one of the highest value-adds per job, relative to its size, of any part of the total beverage alcohol sector.
Economic Impact
The report, Diageo’s Economic Impact in Europe, found that Diageo 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) to the economy.
Additionally, for every €1 Diageo received in net sales, it supported a contribution of €3.60 to the GDP of Europe.
Employment
Diageo said the report also highlights the productivity of Diageo’s employees, who it claims are 4.1 times more productive than the average EU27+ worker in terms of contribution to gross domestic product.
For every person employed directly by Diageo in 2022, a further 8.7 full time jobs were supported by its supply spending.
'Ripple Effect'
“Diageo is an industry leader that generates significant economic impact through its operations in Europe," said Jake Kuyer, associate director at Oxford Economics.
"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.”
Growth Potential
The Oxford Economics study noted that the beverage alcohol sector offers strong growth potential with the EU27+’s (31 countries across continental Europe and the British Isles) spirits trade with the Rest of the World accelerating by 54% between 2012-2022.
Although only one in five alcoholic beverages consumed in the EU+ are spirits, spirits contributed €2 in every €5 in export growth from the region.
'Wider Economy'
“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,” said John Kennedy, Europe President at Diageo.
“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.”
