LONDON--Drinks company Diageo PLC (DGE.LN) Monday said it
expects to save around 60 million pounds per annum via
restructuring of the company's global supply operations.
MAIN FACTS:
-Savings are expected to be achieved in three years.
-Costs associated with the restructuring are estimated to be
GBP100 million.
-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 organizations are expected to amount to GBP60 pounds per
annum.
-Global Supply and Procurement operation will be refocused to
enhance alignment between Global Supply and Diageo's 21 key
markets.
-Responsibility for local operations will be transferred to the
markets and regional structures will be reduced.
-Global supply organization will continue to be responsible for
ensuring excellence across all operations.
-Further work will be required to establish the exact nature of
the reorganization to be made.
-Shares on Friday closed at 1994 pence.
-Write to Tapan Panchal at tapan.panchal@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires