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The Associated Press October 5, 2011, 10:20AM ET

Diageo moving production of Red Stripe US supply

Alcoholic drink maker Diageo PLC is moving production of the U.S. supply of its Red Stripe beer from Jamaica to the U.S. starting next year.

The company, which makes premium spirits, wine and beer, said Wednesday that contract brewer City Brewing Co. will be responsible for producing the U.S. supply of Red Stripe. City Brewing is based in Latrobe, Pa.

Jamaica's Desnoes & Geddes Ltd. will still make Red Stripe for Jamaica, Brazil, Canada and Europe. It will also receive royalties on Red Stripe sales in the U.S.

Diageo said the production plan is typical of most global brewers and will allow for a greater investment in the brand in the U.S.

Shares of Diageo, whose other brands include Johnnie Walker whiskey, Smirnoff vodka and Jose Cuervo tequila, added 18 cents to $75.76 in morning trading.

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