Queenslanders will be choking on the news that their iconic spirit, Bundaberg Rum, will soon be bottled in western Sydney.

The rum will continue to be distilled in its spiritual home of Bundaberg, Queensland, but only its premium rum products will continue to be bottled at the distillery which will lead to 10 redundancies at the plant.

Most Bundaberg Rum will soon be bottled in western Sydney.

''Following a recent review of our manufacturing operations in Australia, we have made the decision to move the majority of our bottling from our Bundaberg Distillery to our bottling plant in Huntingwood, Western Sydney,'' said a Diageo spokeswoman said on Friday.

Diageo, the British beverage giant behind brands like Guinness and Johnnie Walker, blamed business pressures for the restructure that will see 35 job cuts across the organisation.

''This decision comes in response to the continued pressure on our business from lower alcohol consumption and the punitive excise tax on spirits and RTDs (ready to drink) which has seen volumes decline significantly in recent years,'' the company said.