Diageo has officially confirmed the closure of its production plant in Santa Vittoria d'Alba, Italy in January 2025, leaving 350 workers facing job uncertainty. The decision, described as “irrevocable” by Diageo’s Operations Manager Kerry Easter, marks a significant shift in the company’s European operations strategy.
The plant, located in the Cuneo province, has long been a key production site for Diageo’s beverages, leveraging both the region’s historic expertise in alcohol production and modern bottling systems. Despite its efficiency and productivity, the closure aligns with Diageo’s plans to consolidate operations in stronger markets, particularly in Northern Europe.
In a related move in 2017, Diageo had shifted part of its production from Scotland to Italy and the US, emphasizing the strategic importance of the Santa Vittoria d'Alba plant in its global supply chain. This included bottling operations for white spirits like Smirnoff, following a review of its European operations. At the time, the move was intended to optimize efficiency and address market demands, demonstrating the plant's crucial role within Diageo’s European footprint.
Irrevocable Decision Despite Protests
The new announcement was reconfirmed during a meeting with regional authorities, union representatives, and local officials at the headquarters of the Piedmont Region. Those present included President Alberto Cirio and the mayors of Alba, Bra, and Santa Vittoria d'Alba. Protests by unions and workers following the initial announcement in October have failed to sway Diageo’s position.
Diageo has stated its commitment to supporting affected workers by initiating procedures to evaluate potential buyers for the plant. “We will explore proposals to ensure the continuity of production and minimize the impact on jobs,” Easter noted during the meeting.
A Blow to the Local Economy
The Santa Vittoria d'Alba facility has been a cornerstone of the local economy, known for its integration of Cinzano’s centuries-old traditions (prior to the brand’s sale to the Campari Group in 1999) with Diageo’s state-of-the-art production systems. With an annual production volume of 15.7 million 9-liter cases and a turnover of EUR 228 million as of 2013, the plant had been one of the largest bottling facilities in Italy.
Local authorities have expressed deep concern about the economic and social consequences of the closure. President Cirio pledged to work with the Italian government to attract investors and secure a future for the plant. Plans include a targeted search for buyers willing to preserve operations in Santa Vittoria d'Alba.
Seeking Solutions
Diageo insists that the Italian market remains strategically important but requires production adjustments to meet the demands of stronger markets. The company’s willingness to support the transition by seeking a buyer provides some hope for the plant’s future, but skepticism remains high among the workforce and unions.
