Diageo, the world’s biggest drinks company, is looking to save £60m a year with an overhaul of its supply chain that will see a shift from a global chain to country-led operations.
Responsibility for local operations will be transferred to each of the company’s 21 key markets, Diageo said in a statement on Monday. It added that it expected to see savings take effect within three years, with the cost of the restructuring put at £100m.
“Further work will be required to establish the exact nature of the reorganisation to be made,” Diageo said. “However an initial review has already established that efficiency-driven cost savings can be delivered which together with savings from footprint changes and cost reductions in respect of the regional supply organisations are expected to amount to approximately £60m per annum.”
In January, Diageo reported flat sales figures in the UK in its half-yearly results. The company is building up its presence in emerging markets, and has seen strong growth in Latin America in particular.