IN THE MIX

IN THE MIX
A SUMMARY REVIEW OF
Corporate Citizenship
IN LATIN AMERICA AND THE CARIBBEAN
Latin America and the Caribbean is a region that embodies diversity.
Its varied geography, traditions and cultures have undeniably created
unique opportunities as well as challenges. In these circumstances it
is not enough to merely participate, you must get involved.
At DIAGEO we strive to create enriched communities through every
aspect of our business.
That is why DIAGEO is...
IN THE
MIX
This booklet is intended as a Latin America
& Caribbean supplement to the official
DIAGEO Global Corporate Citizenship
report which can be viewed at:
http://ccreport2011.diageoreports.com
2
TABLE OF
CONTENTS
ABOUT DIAGEO
1
INSIDE DIAGEO – OUR PEOPLE, OUR VALUES
2
OUR CONTRIBUTION TO LOCAL ECONOMIES
3
ALCOHOL IN SOCIETY
4
LEARNING FOR LIFE
5
CAUSE-RELATED MARKETING
6
HUMANITARIAN RELIEF
7
ENVIRONMENTAL SUSTAINABILITY
8
RECOGNITION
9
SUMMARY & MORE ABOUT DIAGEO
10
1
ABOUT DIAGEO
DIAGEO is the world’s leading premium drinks business with an outstanding
portfolio of beverage alcohol brands across spirits, wine and beer categories.
Our global brands include SMIRNOFF®, JOHNNIE WALKER®, GUINNESS®,
BAILEYS®, J&B®, CAPTAIN MORGAN®, JOSÉ CUERVO®, CÎROC®, KETEL ONE®
and TANQUERAY®. Brands of heightened importance within the Latin
America & Caribbean region, most of which are locally produced, include
JOSÉ CUERVO and DON JULIO® tequila, CACIQUE®, PAMPERO®, CAPTAIN
MORGAN and ZACAPA® rums, OLD PARR® and BUCHANAN’S® Scotch
whiskies and NEGA FULÔ® cachaça. Wines and beer regional priorities also
include NAVARRO CORREAS® and SAN TELMO® as well as RED STRIPE® and
GUINNESS beer.
DIA GEO
day
Welcome to the first Review of
Corporate Citizenship in Latin
America & Caribbean
4
At DIAGEO we’re working hard to help create
the right conditions for a sustainable, successful
business – flourishing brands, employees who reach
their full potential, communities that are fulfilled and
prosperous, and a stable environment. While you may
be familiar with many of our consumer brands, this
booklet sets out to explain what we do as a global
company to be so much more than merely a supplier
of premium beverages. And, on a more local front,
how we uniquely operate within one of the most
dynamic, yet rewarding parts of the world – Latin
America and the Caribbean.
world
The word DIAGEO comes from the
Latin for day (‘dia’) and the Greek
for world (‘geo’).
We take this to mean “every day, everywhere, people celebrate with our
brands”. DIAGEO brands offer consumers a variety of ways to mark big events
in their lives and brighten small ones.
A global company, DIAGEO trades in over 180 countries around the world
and is listed on both the London Stock Exchange (DGE) and the New York
Stock Exchange (DEO). We employ over 23,000 talented people worldwide
with offices in approximately 80 countries, and have manufacturing facilities
across the globe including Great Britain, Ireland, USA, Canada, Spain, Italy,
Nigeria, Jamaica, Brazil, Venezuela, Argentina, Australia, and the Caribbean.
The DIAGEO Latin America & Caribbean Hub has over 1,800 employees and
operates across 43 different markets throughout a dynamic region with a
population of 600 million.
DIAGEO was formed in 1997, following the merger of beverage giants
GrandMet and Guinness, and is headquartered in London. As the amalgamation
of several companies and individual brands (some hundreds of years old),
the people who laid the foundations of our business so many years ago
would surely recognize the fundamentals of commitment and responsibility
that underpin our corporate citizenship today. Our precursor companies
were also celebrated for their social philanthropy, taking responsibility for
their employees and supporting their communities. Although the language,
programs and functions may have changed over the years, our principles of
commitment and responsibility have not.
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5
2
INSIDE DIAGEO – OUR PEOPLE, OUR VALUES
Our performance culture is demanding
and exhilarating
Our People, Culture and Values
We are confident about the skills, performance and
values of every leader – they live our leadership
standard every day.
6
Authentic, inspiring leadership, which reflects the diversity of
national cultures and personal styles in our global community,
is a key strength that engages and energizes our people as
well as business partners that, combined, stimulates the industryleading performance we are now consistently achieving. The
capability and diversity of our people is a proven competitive
advantage, and fuels the imagination, speed and effectiveness
with which we seize growth and performance opportunities.
Our competitive advantage is particularly pronounced in the
skills and experience of the people who drive our consumer,
customer and innovation agendas. Our core people processes
are deeply embedded everywhere and are recognized as being
transparent and congruent with our DIAGEO values.
We live by high standards of personal behavior and integrity in which
to deliver a sustained, breakthrough performance. While we have high
expectations of our people, they are inspired by the difference they make
and the recognition they receive for achieving great results. Our people are
valued for their individual skills and performance contributions. We work to
create an environment in which everyone feels included in the pursuit of our
ambitions, and understands the role they play in achieving those outcomes.
The combination of valuing and growing our people, a high-performance
culture and the day-to-day reality of the DIAGEO values has led to our
employer reputation being recognized, internally and externally, as a key
competitive advantage in the attraction, motivation and retention of our
talented workforce.
Investing in on-going employee development increases the capability of
our workforce, empowers our people, creates value and spreads wealth
throughout the community. One key way DIAGEO contributes to its
Enriched Communities agenda is by creating opportunities for employment.
The social and economic effects of employment in a positive, stimulating
working environment are far-reaching, building relationships between our
businesses and employees that are mutually beneficial and essential to our
continued growth.
OUR
VALUES
Our values, as communicated
to our employees, capture our
aspirational goals. They are at
the heart of our business and
influence the way we work,
every day and everywhere.
We are passionate about
customers and consumers
Our customer and consumer insights
help form the basis of our growth. We
cherish our brands and we are creative in
pursuing their full potential. Moreover,
we recognize the integral role of the
customer.
We value each other
We seek and benefit from diverse
people and perspectives. We strive to
create mutually fulfilling relationships
and partnerships.
We give ourselves the
freedom to succeed
We trust each other, we are open and
seek challenge, and we respond quickly
to the opportunities this creates.
We are proud of what
we do and how we do it
We strive to behave responsibly with
the highest standards of integrity.
We strive to be the best
We are always learning, always improving.
We set high standards, we stretch to exceed.
7
2
TOTAL BY COUNTRY
INSIDE DIAGEO – OUR PEOPLE, OUR VALUES
DIVERSITY AND INCLUSION
We recognize that a truly rewarding work environment is one
in which all employees’ experiences and perspectives are
appreciated as valued contributions. Building diversity in our
workforce strengthens our connections with all our stakeholders
and adds depth and breadth to our insights into consumer needs.
Our commitment to treating all people fairly and encouraging
employee development extends throughout our employment
and management policies.
As one example of how we aim to foster inclusion, in Venezuela,
where disabled people have often felt excluded from the
business world, we devised a program for qualifying employees,
adapted according to an individual’s disability. Each colleague
has a personal resource to help them with the office environment
and ways of working.
Another way DIAGEO encourages diversity is through overseas
postings. The chance of working abroad is an attractive
opportunity for many of our people. It also brings benefits to
DIAGEO, which can capitalize on the diverse experiences of its
employees around the world.
8
In the USA, where the Latin America & Caribbean Hub office is
based, DIAGEO became the first company in our sector to achieve
a 100% score in the Human Rights Campaign Foundation’s
Corporate Equality Index, which recognized DIAGEO as a top
company for supporting employee equality for gay, lesbian,
bisexual and transgender (GLBT) workers. Tolerance and diversity
is a message we hope to provide leadership on throughout
the region.
1090
62.4%
133
ARGENTINA
72.7%
183
27.3%
175
BRAZIL
58.3%
300
125
50
41.7%
18
NORTHLAC
60%
30
40%
14
21
CHILE
60%
35
12
40%
53
COLOMBIA
50.5%
105
49.5%
5
COSTA RICA
83.3%
6
1
52
16.7%
3
DOMINICAN REPUBLIC
75%
4
25%
1
439
JAMAICA
70.7%
621
182
29.3%
23
LATAM
48.9%
47
51.1%
136
MEXICO
57.1%
238
102
20
PERU
62.5%
32
5
PUERTO RICO
55.6%
9
24
42.9%
12
37.5%
4
44.4%
19
URUGUAY
76%
25
24%
81
VENEZUELA
108
42.9%
189
1747
TOTAL EMPLOYEES
6
57.1%
657
37.6%
“
I love the opportunity to truly understand the
global essence of DIAGEO. It is amazing to be in
the cafeteria and hear Dutch, English, Spanish,
Portuguese, Chinese, Russian, etc, all at the
same table! Being exposed to so many different
cultures opens your mind and you start seeing
the world as a global citizen. Every time we move
to a new place, we do it with the excitement of
wondering what the next unique experience will
be - the local food, the people? It’s great to be
hungry for new experiences!
- Jorge Araujo
”
Reserve Rums Global Marketing Manager
(Native of Venezuela, working in our Amsterdam office)
WORKPLACE SAFETY
support to travelers and guidance on avoiding infectious disease.
We also make HIV medications available to employees in certain markets
where needed.
With the recent threat of pandemic flu to our people, their families and
our business, a dedicated management team evaluated the risks and put
plans in place to respond to an outbreak. Working with medical experts,
we planned the actions we would take at each alert level of an escalating
pandemic to ensure business continuity; planned for the care of our people
and their families; launched an education campaign; and provided for over
70,000 courses of Tamiflu by free or subsidized prescription for all DIAGEO
employees and their families, subject to local regulatory and practical
constraints. A detailed 27-page handbook on how to respond has been
created and be updated within days to contain information specific to the
latest strain.
During the 2009 H1N1 crisis, DIAGEO Mexico instituted a Contingency Plan
to avoid the spread of the virus to employees and their families. A series
of health alerts and actions were rolled out to help staff who had a high
probability of contracting the virus. As part of this initiative, a sterile area was
created where employees had to use medical masks and sanitize their hands
prior to entering the office. Enhanced office cleanliness was implemented,
and a work-from-home plan was put into action. The crisis was carefully
monitored until concern subsided.
Our goal is to create a ‘zero harm’ culture in which everything possible is
done to prevent safety incidents. Our vision is of no fatalities, no injuries
and no harm coming to anyone on our premises, summed up by the tagline
‘Everyone going home safe, every day, everywhere’.
EMPLOYEE HEALTH AND WELL-BEING
In addition to making workplace safety a priority, DIAGEO monitors any
impact that work activities may have on employees’ well-being and
recommends corrective action when an issue arises. Our Occupational
Health Service conducts surveillance as a matter of best practice or as
required by local laws. In addition, we offer affirmative employee education,
covering topics such as healthy heart advice, manual handling techniques,
9
2
INSIDE DIAGEO – OUR PEOPLE, OUR VALUES
DEVELOPING SKILLS, LEADERSHIP
AND CAPABILITIES
The specific skills and knowledge we need from our employees
to help meet our ambitious business objectives are set out in the
Leadership Standard, which describes the qualities we expect of
senior managers, and the DIAGEO Capabilities, which illustrate
what we expect of all other employees. In addition to setting
clear expectations, we build on employees’ individual strengths
via our Partners for Growth annual performance review and
goal-setting program, which emphasizes honest, open and ongoing conversations between employees and their managers to
support their progress towards business and personal objectives.
We nominate successors for senior positions to ensure business
continuity. Career opportunities are posted via our online Career
Shop, which allows people to submit their resumes in five
languages for any available position around the world.
Our online, multi-language learning site, The DIAGEO Academy,
offers resources on topics including people management,
leadership, technical and functional expertise as well as career
development. This year, the site was completely redesigned and
re-launched. The new design incorporates broader context for
learners with more emphasis on functional learning and allows
the vast majority of our employees to access the material in their
native language. It had 16,614 users during 2010.
EMPLOYEE ENGAGEMENT
10
We believe that when employees are closely committed and
engaged with DIAGEO’s success, and when they believe that
DIAGEO is a special place to work, this will lead to superior levels of
performance and fulfillment. We increasingly take a holistic view
of the employee experience and seek to create the conditions
in which people can flourish. Specific activities have included
well-being programs, increasing face-to-face communication
with managers, recognition programs, developing great people
managers, and working in partnership with people to release their full
potential, while simultaneously meeting their personal goals. An open
environment for internal communication is key to building employee
engagement and all DIAGEO employees around the world are free to join
trade unions.
GLOBAL VALUES SURVEY
We have ambitious targets for engagement and, subsequently, measure
our progress in this area through our global values survey, which monitors
DIAGEO employee opinion around the world. The importance of effectively
engaging our people makes this survey a valuable tool in shaping strategy
and designing ways of working. In the most recent survey conducted,
52% of employees in Latin America and the Caribbean were described as
‘Super Engaged’ – exceeding the target set and setting the precedent of
‘Most Engaged’ compared to any other DIAGEO business unit in the world.
Setting the bar highest of any single market for DIAGEO this year was
Venezuela with an unprecedented 67% ‘Super Engaged’ score.
By participating in independent, third-party rankings, DIAGEO has obtained
a number of external assessments of the workplace we provide our
employees. Our businesses were judged to be within the top ten in 11 of the
rankings. Please see Awards section, p. 32 which lists many of the corporate
accolades we’ve received.
EMPLOYEE VOLUNTEERISM
DIAGEO Employees and Local Communities
Our employees may be proud to work for a company that invests in
community development, but many want to be directly involved as
volunteers or fundraisers, and we do what we can to support them in their
efforts. In Latin America and the Caribbean in particular, our employees
give much extra-curricular support to our many ‘Learning for Life’ programs
and ‘Spirit of the Americas’ disaster relief efforts. ’Compartiendo Talento’ is a
weekend volunteer program now entering its third year. It has been highly
successful in engaging employees with their local community.
Disaster relief, El Salvador
DIAGEO LA&C Office, Miami
OFFICE ENVIRONMENT
As part of our commitment to being a great place to work, our facilities experts
seek out comfortable, well located offices around the region. In addition
to location, security concerns, environmentally friendly construction and
use of local materials, we also look for bright, naturally lit offices where our
staff can enjoy natural daylight. This feature also benefits the environment
from reduced use of electricity. Where possible, we participate in recycling
programs for office waste, and we even create them where they do not
already exist.
Throughout our region, DIAGEO places extreme importance on the
happiness and well-being of our employees. Since a typical employee
spends just as much time at work as they do at home, we continuously
stride to keep our team healthy, productive, and in great morale. DIAGEO’s
global ritual of Thursday Happy Hour has long been credited with building
camaraderie in the work place by giving team members somewhere to
unwind responsibly. Throughout the entire year, we have Super Fridays,
where we allow our employees to leave work at 1pm. Across most DIAGEO
offices, birthdays are a day of well-deserved celebrations, wherein it is not
uncommon for the entire office to gather and celebrate employee’s birthdays
by blowing out candles. There are other initiatives in place such as wellness
programs that provide employees with nutritional and exercise guidance, 15
minute massages on Thursdays, Child Care allowances for those employees
with young children, as well as flexible and remote working arrangements
(where possible) to allow our employees to be productive while not being
able to be in the office.
11
3
OUR CONTRIBUTION TO LOCAL ECONOMIES
The production and distribution of our brands to our customers are the
responsibility of our supply organization. DIAGEO companies, some of
which are quoted in their own right on local stock exchanges, such as the
Red Stripe Company in Jamaica, manufacture about 85% of our brands by
volume. Globally, this supply chain operates 36 distilleries, 14 breweries
and 13 wineries, supported by 24 blending and packaging plants and
42 warehousing and other facilities. In Latin America and the Caribbean
we have offices in ten markets (Argentina, Brazil, Chile, Colombia, Costa
Rica, Dominican Republic, Jamaica, Mexico, Peru, Puerto Rico, Uruguay,
and Venezuela, in addition to the Miami Hub). As for manufacturing and
packaging facilities we have one of our own (Navarro Correas), four
joint venture plants (including Red Stripe, Don Julio and Myers) and
16 partner locations.
DIAGEO & the countries
we operate in
12
Our businesses and their supply chains are a source of
economic opportunity and development in the many
markets in which we operate. DIAGEO businesses
around the world provide jobs and develop the skills
of our people, create opportunity for other businesses
in the value chain, generate revenue for governments
and invest in capital projects. By doing all this in
a responsible way, we make our most significant
contribution to the sustainable development of the
communities in which we operate.
Wherever we invest in new facilities, such as the recent US$14 million
investment in our Navarro Correas facility in Mendoza, Argentina, we
create jobs in constructing, operating and servicing the plant. Although
it may be the new projects that make the headlines, investment in our
existing operations is just as important in creating economic opportunity
and supporting development.
In 2008, we announced a 30-year agreement with the Government of the
US Virgin Islands that will allow DIAGEO to build a new, state-of-the-art rum
distillery and maturation warehouse on the island of St Croix. The landmark
agreement not only allows DIAGEO to own and operate a distillery for the
production of Captain Morgan rum in the United States, it also provides
the US Virgin Islands with economic stimulus, enabling the territory to bring
its economy out of deficit and provide stability for the next 30 years or more.
The distillery, which opened in December 2010 will begin producing rum
in 2011, and by the following year, supply rum for the Captain Morgan
brand in the USA. Constructed according to Leadership in Energy and
Environmental Design principles, the distillery will have a closed-loop water
system and derive energy from waste, and is designed to operate with zero
discharge into the Caribbean – a revolutionary environmental concept in the
rum business.
LATIN AMERICA & CARIBBEAN DIAGEO and THIRD PARTY
DIAGEO
1
Navarro Correas, Argentina
Wine
Bottling
JOINT VENTURES
Don Julio
2
4
5
Cuervo, Smirnoff
6
11
Mexico
North LAC
Liza
10
Darsa
La Florida 9 3
Holcom, La Florida
Red Stripe, Myers
TH&M
WIRD
2
Don Julio, Mexico
Wine
Bottling
Distillery
3
Holcom, Costa Rica
Wine
Bottling
Distillery
4
Myers, JamaicaWine
Wine
Distillery
Bottling
Wine
Bottling
Brewery
Bottling
4Wine Red Stripe,
Bottling Jamaica Distillery
14
Smirnoff
Brewery
Distillery
Distillery
THIRD PARTY PROVIDER
DUSA, CILCCA
5
Cuervo, MexicoWine
6
Wine
DistilleryBottling
TH&M, Bahamas
Wine
Bottling
Distillery
6
WIRD, Barbados
Wine
Bottling
Distillery
7
DUSA, Venezuela
Wine
Bottling
Wine
Distillery
Bottling
Brewery
Distillery
7
CILCCA, Venezuela
Wine
Bottling
Wine
DistilleryBottling
Brewery
Distillery
8
Cereser North, Brazil
Wine
Bottling
Distillery
8
Cereser South, Brazil
Wine
Bottling
Distillery
8
Fazenda Soledade, Brazil
Wine
Bottling
Distillery
Andean
8
New Age, Brazil
Wine
Bottling
Distillery
Colombia, Venezuela
8
WOW, Brazil
Wine
Bottling
Distillery
9
La Florida, Costa Rica
Wine
Bottling
Distillery
Wine
Bottling
Distillery
Brewery
Caribbean,
Free Trade Zones,
Central America
13 Breweries and
6 Spirits production
sites. 9M physical
cases and 14M EUs
South LAC
Argentina, Chile,
Peru, Bolivia,
Ecuador
Navarro Correas:
1.2M Cases
Local Production:
1M physical cases
8
Cereser North
Cereser South
Fazenda Soledade
New Age
WOW
2 Distillers &
Co-packers
Local Production:
5M physical cases
PUB
12
Old Times
Paraguay,
Uruguay, Brazil
4 Co-packers (5 sites)
Local Production:
6M physical cases
Brewery
Distillery
10 Darsa, Guatemala
Wine
Bottling
11 Liza, El SalvadorWine
Bottling
Distillery
Brewery
12 Montevideo, Uruguay
Wine
Bottling
Distillery
Brewery
Wine
Distillery Bottling
Brewery
Distillery
Wine
Distillery Bottling
Brewery
Distillery
13 Campari, Argentina
Wine
13
1
Campari
Navarro Correas
Bottling
14 Angostura, Trinidad
Wine & Tobago
Bottling
Distillery
KEY
The region ships approximately 19M (9L) and domestically
produces circa 15M physical cases and is supported by
approximately 207 employees across supply.
Bottling
7
Wine WineWine
Wine
BottlingBottling
Bottling
BottlingDistillery
Distillery
Distillery
Distillery
BreweryBrewery
Brewery
Brewery
13
3
OUR CONTRIBUTION TO LOCAL ECONOMIES
Customer Relationships
Our customers are the businesses that distribute and sell our products.
Our aim is to provide our customers with the best overall service in every
market and build amazing relationships. We continually review our products
and promotions to help meet the changing needs of both customers
and consumers.
Through our Perfect Plant program, we aim to create and maintain
a culture of continuous improvement in the effectiveness and
quality of our manufacturing. The program, launched in 2008,
now applies to over 60% of the 186 processes identified at our
71 global production sites. Perfect Plant makes information on
quality, environmental initiatives and waste reduction more
accessible, providing new forums for learning and accelerating
the sharing of manufacturing information. It also encourages
learning from leaders in manufacturing excellence outside
DIAGEO. Success is measured through a set of performance
indicators that also encourage benchmarking and the sharing of
best practices between our sites.
We collaborate with them to encourage high standards of corporate
citizenship throughout the demand side of our value chain and see our
strategic relationships with major customers as a way of advancing this. For
example, Wal-Mart, one of our largest customers in Latin America and the
Caribbean, is working with DIAGEO and other key suppliers to ensure that
the products they buy are manufactured to high environmental standards
and that brand containers and outer packaging are both efficient and
sustainable.
In February 2010, DIAGEO was named 18th in the Global 100
Most Sustainable Corporations in the World by Corporate Knights
magazine. Judged by an independent panel of sustainability
experts, the companies included in the Global 100 are considered
to have developed the best capabilities in their respective industries
to manage environment, social, and governance risks, and to take
advantage of new business opportunities in these areas.
“
This is being reinforced by Wal-Mart introducing a sustainability scorecard
that assesses each product line for its environmental impacts. Additionally,
Cereser, our co-packer partner in Brazil, is now working with us on an
environmental study into waste disposal and energy saving. The intention
is that all cost savings made through these efforts will be invested back into
the Learning for Life program in Brazil.
This agreement marks the greatest single financial step forward in this territory in 50 years. It will bring
jobs and a long-term source of funds that will go far towards solving many of the challenges we face. It
will generate about one hundred million dollars a year in new excise tax revenues for the Territory for
the next thirty years, funds that are more important now than ever…these revenues will provide us with
capital investment capacity, and revenues for funding long-term bonds, our pension fund commitments,
and our long over-due employee obligations.
- John P. deJongh, Jr.
”
14
Governor of the US Virgin Islands
Red Stripe bottling facility, Jamaica
License to Operate (LTO)
Part of being an industry leader is setting and maintaining the highest
standards in all processes and practices relating to quality, environmental
and occupational health & safety issues. Launched five years ago LTO is
a global DIAGEO process for driving constant improvement in these
areas and managing compliance with legislation, our policies and risk
management standards .
Public Policy
DIAGEO supports policies that lead to enriched economic and social life in
the communities in which we operate. We believe that open trade is good
for business and consumers by ensuring the widest range of choices at the
most competitive prices. We support policies that encourage responsible
drinking decisions by consumers, including specific taxes based on alcohol
content, and targeted interventions as the most effective means to reduce
alcohol-related harm. Equitable systems and levels of tax are an important
topic in our conversations with governments around the world as are
other issues that impact our business such as reducing free market access
barriers, establishing and enforcing appropriate regulation of the alcohol
beverage industry, developing and funding community development
programs, supporting national alcohol policies, and launching responsible
drinking campaigns.
15
3
OUR CONTRIBUTION TO LOCAL ECONOMIES
Interview with
Scott Barnhart,
SUPPLY DIRECTOR
LA&C
We frequently deal with government departments through trade
associations that provide us with a platform to share our views on
industry-wide issues – for example, Fundación de Investigaciones
Sociales A.C. (FISAC – Mexico), Asociación Colombiana de
Importadores de Licores (ACODIL – Colombia), Associação
Brasileira de Bebidas (ABRABE – Brazil), Alcoholic Beverage
Industry Alliance (ABIA - Puerto Rico), Asociación de Productores
y Importadores de Bebidas Alcohólicas de Centroamérica
(APIBAC – Central America), Trinidad and Tobago Beverage
Alcohol Alliance (TTBAA – Trinidad & Tobago), and Asociación
Pro Consumo Responsable de Bebidas Espirituosas (APROCOR –
Chile). In addition, we work with the local Chambers of Commerce
in-country.
DIAGEO also participates in public-private events, such as
the April 2010 World Economic Forum on Latin America in
Cartagena, Colombia and the December 2009 VII Inter-American
Conference on Corporate Social Responsibility in Uruguay, in
which a member of the DIAGEO Latin America and Caribbean
Executive team attended and led discussions in both forums.
16
We have a strong Code of Business Conduct that we adhere
to in all business dealings, which includes how we deal with
governments. Our agents and third parties who act on our
behalf are obliged to act within the provisions of our Code. We
also have strong guidelines and review processes in place for any
gifting to government officials to ensure that any gifts received
or offered do not create improper influence.
“
Over the past 12 months DIAGEO has transformed
its Latin America & Caribbean Supply center,
by connecting the supply chain teams across
the region to leverage local resources and work
towards a common objective in terms of the
environment, quality, and health & safety.
We have already seen tremendous improvement in
operations with the formation of our LA&C Supply
regional ‘way of working’. We are using the DIAGEO
Global Supply License-to-Operate standards to
assess both our own sites and our third-party
producers and warehouse providers.
Our aim is that our supply chain partners operate
at the same standards as our own sites. Our supply
chain providers are becoming partners, and they
have a genuine interest in improving their impact
on the environment, creating a “Zero Harm”
workplace.
”
ZACAPA petate weaver, Guatemala
We have responsibilities to governments as well as to other stakeholders and
acknowledge this by seeking to conduct our tax affairs according to clear
principles. We are committed to pay tax according to the law; to protect
and grow value for shareholders; and to maintain good and honest working
relationships with tax authorities, sharing our views on tax laws with them
directly and through trade associations. Transactions between DIAGEO
subsidiaries based in different countries are conducted at arm’s-length
Navarro Correas Winery, Argentina
pricing principles, with the majority being conducted in accordance with
the OECD Model Tax Convention and OECD Transfer Pricing Guidelines. In
the case of countries not following OECD guidelines, we operate according
to local legal requirements. Consequently, the authorities in the countries
involved receive an appropriate allocation of tax from the transaction in full
compliance with applicable law and the same profits are not taxed twice.
17
4
ALCOHOL IN SOCIETY
Through partnerships in our industry, and in collaboration with governments,
regulators and advocacy groups, we have applied our best creative talent
and financial resources to make real progress to reduce the misuse of
alcohol and to make responsible drinking of alcohol a valued, enjoyable
part of celebrations in everyday life, acknowledging and respecting the
role of alcohol across diverse societies. The majority of our key stakeholders
recognize DIAGEO as an industry leader, authentically committed to making
a positive difference to alcohol’s role in society.
We provide consumers with information about our brands and products –
with package labeling and/or online – to help them make informed choices.
Our information policy applies to all DIAGEO-owned alcohol beverage
brands and specifies coverage of allergens, alcohol content/serve size, as
well as a responsible drinking reminder and the mention of an alcohol
educational website DRINKiQ.com, which was created by DIAGEO.
DIAGEO has made a significant
and sustainable impact on
creating a more positive role
for alcohol in society.
18
DIAGEO believes that responsible drinking can
be a valued and enjoyable part of celebrations in
everyday life for most people who choose to drink.
We support programs that aim to increase awareness
about responsible drinking and aspire to change
people’s attitudes and behavior through both brand
and corporate-facing campaigns.
DIAGEO uses a range of measures to deter counterfeiters, such as covert pack
markings and anti-refillment caps on bottles. We work to raise awareness
among legislators and support law enforcement agencies by training their
officers and supporting legal action against counterfeiters. We also work to
encourage equitable taxation across all alcohol segments.
RESPONSIBLE DRINKING FOCUS
DIAGEO is at the forefront of industry efforts to promote responsible drinking.
We set world-class standards for responsible marketing (via the DIAGEO
Marketing Code) of our adult beverage brands, while simultaneously working
to help combat alcohol misuse through awareness campaigns, alcohol policy
and dialogue. In addition to the company’s global information resource,
DRINKiQ.com, DIAGEO Latin America & Caribbean is presently focusing
on four consumer [two are brand-led, the other two are corporate-led]
initiatives to stress the importance of responsible drinking: JOHNNIE WALKER®
‘Piloto da Vez’/’Conductor Designado’, DIAGEO ‘Guardian Angel’, Retail 18+
(in conjunction with major retailers throughout the region) and JOHNNIE
WALKER® ‘Be a Giant: Don’t Drink & Drive’. In Brazil DIAGEO has partnered with
Wal-Mart® to create an age verification system designed to stop the sale of
alcohol to minors. Conducted at check-out, the program is also supported by
strong point of sale visuals and has been proven to be highly effective.
The content of DRINKiQ.com focuses
on five key areas:
DRINKiQ.com is a global resource for all interested parties to share
programs and tools designed to fight alcohol misuse and help individuals
make responsible choices about drinking – or not drinking. DIAGEO has a
long history of promoting responsibility and DRINKiQ.com is the next step
in that global effort.
Through its innovative design, visitors to the site can provide information to
post on DRINKiQ.com. It also features unique tools such as videos of experts
answering commonly asked questions about alcohol issues, information
on how to responsibly host events and parties, and other downloadable
resources. A key feature of the site is The Responsibility Channel, an online
community where consumers, parents, teachers, government officials as
well as retailers can post and share videos and programs they have found
effective in addressing alcohol-related issues.
“
FACTS ABOUT ALCOHOL
1
Information about Alcohol and how it affects the body. In addition
to web content, the site also features video interviews with experts
from around the world.
RESOURCE CENTRE
2
An extensive library of resources from DIAGEO, non-governmental
organizations, government bodies, educational institutions and
others, to provide visitors with the opportunity to share and learn
from a range of programs they can adapt and repurpose.
DIAGEO & RESPONSIBLE DRINKING
There are many valuable initiatives that
exist to address the issue of alcohol abuse,
and DRINKiQ.com supports these efforts
by showcasing them to the community
and connecting them with like-minded
individuals and groups.
”
3
4
An overview of DIAGEO’s history of promoting responsibility,
examples of its efforts to combat alcohol misuse, and information
detailing its points of view on specific topics such as drunk
driving and underage drinking.
AROUND THE WORLD
A collection of case studies showcasing DIAGEO’s responsible
drinking initiatives from around the world.
Carolyn Panzer
Global Director, Alcohol and Responsibility for DIAGEO
LINKS
DRINKiQ.com consists of a global site and 18 country-specific websites in
8 languages. We also provide macronutrient information about DIAGEO
brands through KnowYourDIAGEODrink.com.
5
A comprehensive list of links to organizations and government
agencies from which visitors can learn more about responsible
drinking.
19
4
ALCOHOL IN SOCIETY
– winning a prize such as tickets to the JOHNNIE WALKER Grandstand at
Interlagos during the Brazilian Grand Prix, an all-expense paid trip to the
home of Team McLaren in Woking, England, or a VIP Meet and Greet with
Team McLaren drivers.
JOHNNIE WALKER® ‘PILOTO DA VEZ’ /
‘CONDUCTOR DESIGNADO’
With JOHNNIE WALKER’s pioneering foray into Formula 1™ via its
global sponsorship of Vodafone McLaren Mercedes, the DIAGEO
Latin American & Caribbean Hub has implemented a pan-regional
responsible drinking-focused campaign, ‘Piloto da Vez’ in Brazil
and ‘Conductor Designado’ in eleven Spanish-speaking markets
(Argentina, Chile, Colombia, Costa Rica, Dominican Republic,
Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela). Now
in its fifth year of implementation, this designated driver-focused
campaign utilizes past and present Team McLaren drivers such
as Juan Pablo Montoya (Colombia), Pedro de la Rosa (Spain),
two-time world champion Mika Häkkinen and Heikki Kovalainen
(Finland), as well as most recently, both the former reigning
world champions Lewis Hamilton (England) and Jenson Button
(England), as campaign spokesmen.
20
This pioneering pan-regional responsible drinking campaign
– the first of its kind within Latin America & the Caribbean – is
a fully integrated program involving advertising, consumer
promotion, civic endorsement, public relations and digital,
experiential, relationship and viral marketing disciplines. Each
year, consumers are given the unique chance to learn more
about being a designated driver, with select consumers – best
demonstrating precision and control both on-road and off
In its most recent activation, a global campaign has been created by
JOHNNIE WALKER, entitled ‘Join the Pact’ wherein consumers, and indeed
government, media and other stakeholders, are encouraged to physically
sign ‘The Pact,’ thus confirming their commitment to being a designated
driver – either a ‘Piloto da Vez’ (Portuguese) or ‘Conductor Designado’
(Spanish). A JOHNNIE WALKER branded Formula 1 replica two-seater
supercar has been created and has shut down streets in Rio de Janeiro,
Bogotá, Caracas and Montevideo in order to further drive awareness of
responsible drinking by literally stopping traffic.
If we have learned something from
“ Mika
Häkkinen’s visit it is that we
need to have a designated driver.
”
-Federico Franco
Vice President of Paraguay
Beginning in December, 2006, two-time Formula 1 champion Mika
Häkkinen became the Global Responsible Drinking Ambassador for
JOHNNIE WALKER. Mika invites consumers to make a personal pledge to
designate a driver (www.jointhepact.com). He engages with consumers,
retailers & distributors, media and government stakeholders - doing what
he does best and putting his legendary driving skills to use in the streets of
major cities as he encourages everyone to ‘Join the Pact.’ For the past four
years, this highly successful program serves as a reminder to consumers of
the importance of responsible drinking and to designate a driver, and has
received the endorsement of many local government officials in addition to
signing up more than 1 million consumers around the world to ‘Join the Pact’
since its inception
to join me and JOHNNIE WALKER
“ Itourge‘Joineveryone
the Pact’. If you are planning on going out
for a drink, use a designated driver and never
drink and drive.
”
- Mika Häkkinen
JOHNNIE WALKER
Global Responsible Drinking Ambassador
21
4
ALCOHOL IN SOCIETY
DIAGEO ‘GUARDIAN ANGEL’
Launched in 2005 after being created in Venezuela, the ‘Guardian
Angel’ program is brought to life during the holidays (such as
Christmas and Semana Santa as well as at large-scaled cultural
festivals like Carnival and Fiesta de Flores) through ‘winged’ brand
ambassadors who take to the streets, enter retail establishments
and populate billboards throughout Latin America and the
Caribbean, reminding consumers to take responsibility for their
actions and to play the role of a Guardian Angel themselves by
looking out for friends and family when celebrating with alcohol.
Complementing the good deeds of the angels – who on
occasion find well-known celebrities bearing wings themselves
to help amplify the message – are actual DIAGEO employees
who volunteer as ambassadors to promote responsible drinking
efforts. The campaign has been so successful in Latin America
that the program has been rolled out in the far reaches of Asia
with plans for implementation across Europe.
22
“
Everyone can be a ‘Giant’ and make a
difference in terms of taking the lead and
being responsible. That means always
planning ahead and having a designated
driver to get home safely.
”
- Sir Vivian Richards
JOHNNIE WALKER®
‘BE A GIANT: DON’T DRINK & DRIVE’
The first pan-Caribbean responsible drinking program, JOHNNIE WALKER
‘Know Your Boundaries,’ was launched in 2007, as the centerpiece of JOHNNIE
WALKER’s sponsorship of the ICC Cricket World Cup. During the two-month
campaign, Sir Vivian Richards (one of the sport’s all-time greatest players)
toured the West Indies to raise awareness of the importance of responsible
drinking. With a double-meaning for ‘staying in control’ on the responsible
drinking front as well as a direct reference to the boundary rope within the
game of cricket, the ‘Know Your Boundaries’ campaign has generated over a
billion consumer impressions thus far and has received the endorsement of
government and media stakeholders throughout the Caribbean.
JOHNNIE WALKER has since extended its involvement in the sport through
its sponsorship of the West Indies Cricket Team and re-enacted its ‘Know
Your Boundaries’ campaign in support of the Australian Series in 2008 and
the England Series in 2009. Each year, a variety of engaging and interactive
consumer ‘edutainment’ programs help deliver the responsible drinking
message to a broad Caribbean audience through the power and presence
of Sir Viv. The evolution of this campaign, newly entitled ‘Be a Giant: Don’t
Drink & Driver’, was unveiled just this April to drive awareness of responsible
drinking around the 2010 Twenty/20 World Cup taking place in the
Caribbean. The campaign features the journey that Sir Viv has made on the
pitch and the skills that were required for him to reach iconic stature within
cricket and drawing a correlation for what it takes to ‘Be a Giant’ by assuming
the role of designated driver.
RETAILER 18+
DIAGEO’s work with major retailers throughout the region offers an
outstanding example of how working with a customer can extend the reach
of our responsible drinking message. Retailer 18+, an alcohol sales control
project is implemented via partnerships with major off-trade retailers
throughout Latin America and the Caribbean designed to restrict access
to alcohol products by individuals younger than legal purchase age. The
program’s success represents the incredible partnership between supplier
and retailer to combat underage drinking.
An example of this program can be found in Brazil, where federal law
determines that no one under 18 years old may purchase alcoholic
beverages. In partnership with DIAGEO, Wal-Mart Brazil launched a program
to prevent alcohol sales to minors, while communicating a positive message
about Wal-Mart’s commitment to the country and to Brazilian customers in
general. Before the launch, a shopper survey was developed to measure the
potential impact of this initiative on the customer experience. More than
600 employees were trained to use the new Item Restriction Tool, which
requires proof of a customer’s age before permitting a sale. The tool was
then successfully implemented at all stores, assuring that Wal-Mart Brazil
operates within the law to control sales of alcohol and other age-restricted
products.
“
DIAGEO is miles ahead of its main competitor.
- Alexandre Knabben
National Commercial Manager, Wal-Mart Brazil
”
The main challenge of this campaign was building goodwill among
consumers so they would be happy to show identification when asked.
Because alcoholic beverages are very important for Wal-Mart’s store sales,
all aspects of the ‘Retailer 18+’ program took customer satisfaction into
account. Special banners and signs were developed and strategically placed
to identify restricted products and remind shoppers of the legal drinking
age. One year after implementation, store figures showed no adverse
impact on sales, while survey results reflected strong customer satisfaction
and approval of the efforts to combat underage drinking and encourage
consumer responsibility.
23
5
LEARNING FOR LIFE
24
A long-term, sustainable program,
‘Learning for Life’ seeks to provide
transformational opportunities to
50,000 lives between today
and the end of 2011.
‘LEARNING FOR LIFE™’ is a DIAGEO Latin America
and Caribbean program designed to transform
lives of underprivileged people in the communities
in which it operates. By directly and indirectly
providing education and skills, the program gives
people a real chance to procure employment and to
become active and respected contributors to their
communities. ‘LEARNING FOR LIFE’ programs, which
are implemented in partnership with established
educational and training organizations, focus on six
broad areas of competency, providing education and
skills for graduates to find work in tourism, retailing,
the arts, hospitality, entrepreneurship, and teaching.
During the fiscal year 2010, ‘Learning for Life’ was in
action in more than 15 countries with 35 total projects
and 17,253 students spread across the region.
The programs contained within ‘Learning for Life’ contribute to the ongoing
social and economic enrichment in communities throughout the region
by educating participants in essential life and business skills. The program
has been partly funded by Buchanan’s Forever concerts over the past
three years in Mexico City, Bogota and Caracas, featuring performances by
Bon Jovi, Elton John, James Blunt and Sting.
PROJECT TOURISM
‘Project Tourism’ inspires communities to identify their strengths and
develop local, natural and cultural assets into sources of tourism income
in a culturally and environmentally sensitive way. Project Tourism seeks to
interact with communities and empower their tourism potential, helping
them to organize strategies through the ‘Learning for Life’ core curriculum.
Capitalizing on our presence with Navarro Correas in Argentina’s
Mendoza wine region, a second class of 75 students is currently learning
skills relevant to the wine industry following a successful first class of 21
graduates. Project Tourism in the Dominican Republic was recently the site
of a large ‘Learning for Life’ graduation, with over 260 students completing
a program in culinary skills.
PROJECT ARTIST
‘Project Artist’ teaches gifted individuals and groups to utilize their artistic
abilities to generate income for themselves, their families and their
communities. Participants follow the ‘Learning for Life’ core curriculum
in addition to acquiring specific skills such as entrepreneurship, business
management, artisan skills or preparation for work in the art or music
industry. Recently, three Project Artist graduates from Jamaica were able to
secure professional recording contracts with Solid Agency, one of Jamaica’s
leading entertainment companies.
25
5
LEARNING FOR LIFE
PROJECT ENTREPRENEUR
‘Project Entrepreneur’ trains community members with knowledge
and practical tools to become productive and self-sustaining in
the future. The program is designed to promote institutional and
organizational strengthening of community social structures,
improving individual and collective capacities in management
and entrepreneurship. A Project Entrepreneur program focused
on construction skills launched in nine sites within Haiti, just a
month before the January 2010 earthquake. The construction
sector is proving especially important in Haiti following the
devastation of the earthquake. Project Entrepreneur in Haiti was
recently the site of the largest ‘Learning for Life’ graduation, with
948 students completing a program in construction skills.
(See Chapter 7 for more information on this program)
26
In addition to Sting’s participation in the ‘Buchanan’s Forever’
campaign that benefitted ‘Learning for Life,’ the former Police
front-man and bassist visited the Project Entrepreneur site of
Pasacaballos, Colombia. Sting met with students, experiencing
the mission of ‘Learning for Life’ firsthand, in which students learn
the skills required to improve the quality of life for themselves
and their families. Project Entrepreneur has already impacted
hundreds of lives to date in this community, one of the poorest
in Colombia.
“
The Learning For Life program is an
example of how a brand and company
can put to good use its leadership for
the benefit of those less fortunate.
”
- Manuel Rivera
General Manager of Grupo Editorial Expansión Mexico
PROJECT BARTENDER
‘Project Bartender’ prepares individuals to enter a career in bartending
or related fields with the skills and knowledge needed to responsibly
serve customers and provide excellent experiences. Project Bartender
offers underprivileged young adults of legal serving age the chance at
obtaining first time employment as a bartender, server or barista in the onpremise sector of the hospitality industry. In Venezuela, 76 students recently
graduated from the program, following a curriculum of both professional
and bartending skills.
PROJECT RETAILER
‘Project Retailer’ develops young people for a career in the retail industry,
providing them with the skills for customer relations, cash management and
professional appearance. Project Retailer offers disadvantaged, unemployed
individuals the opportunity to gain skills and hands-on experience in the
packaged goods and food store retail sector. In São Paulo, 90 students
recently graduated with their professional certificates, thanks to a partnership
with a local university.
PROJECT PROFESSOR
‘Project Professor’ provides training for teachers in marginalized areas, with
a current development focus in Mexico. Following 32 weeks of training and
online counseling, students receive a diploma, and the top 1% of students
are awarded with a 100% scholarship for a summer course in Spain. During
fiscal 2010, ‘Learning for Life’ impacted the lives of 10,790 teachers.
27
6
CAUSE RELATED MARKETING
Launched in 2007 with the purpose of ‘leaving a lasting mark’ within the
community, DIAGEO’s ‘BUCHANAN’S Forever’ program partners with local
and relevant charities to produce cause-related brand marketing, sponsoring
musical icons for a concert experience in prominent metropolitan cities
throughout Latin America. Featuring international superstars Sting, Sir Elton
John, James Blunt, and Jon Bon Jovi, as well as a host of Latin American
music sensations including Fito Páez, Aleks Syntek, Franco de Vita, Fonseca,
Ely Guerra, and Beto Cuevas. The events pay tribute to the philanthropic
legacy of the Scotch whisky brand’s founder, James Buchanan.
DIAGEO’s partnership with
non-profit organizations
across the region is a vital and
growing function of our social
responsibility endeavors
28
By creating compelling programs for our brands,
which direct funds towards ‘Learning For Life’, we
also encourage our consumers to participate, care
and give back. In addition to ‘BUCHANAN’S® Forever’,
we are also developing a valuable program for
OLD PARR® to be known as ‘Puras Convicciones’ and
a women’s cause-related program for BAILEYS®.
As a result of the last three editions of ‘BUCHANAN’S Forever’, nearly US $3 million
has been raised to support the select social causes affiliated with ‘Learning For
Life’, including support for: Los Jardines de Quinta de Anauco in Caracas, one
of the city’s most historic landmarks; the Fundación Antonio Restrepo Barco
in Bogotá, an organization dedicated to promoting human rights and social
development in Colombia; the Bosque de Chapultepec in Mexico City,
the city’s largest public park; the UMA Foundation in Venezuela, which
provides shelter, stability and comfort to the elderly and abandoned; and
the Televisa Foundation in Mexico which provides education, tools and
training to teachers as well as scholarships to young adults.
“
I don’t often align myself with companies,
but DIAGEO has this commitment to
giving something back, and I think as an
inspiration to other companies, they’re
wonderful.
- Sting
”
think it’s an incredible thing what
“ IBuchanan’s
is doing, and I hope more
companies will follow suit. It’s great
morally and socially to do something
like this and have DIAGEO leading the
way and setting an example.
”
- Sir Elton John
29
7
CARING FOR OUR COMMUNITIES: HUMANITARIAN RELIEF
In January 2010 following the devastating Haiti
earthquake, we delivered 45,000 pounds of disaster
relief including new World Health Organization
(WHO) sanctioned emergency health kits.
30
HURRICANE RELIEF
In recent years, ‘Spirit of the Americas’ has been called into action on several
occasions throughout Latin America and the Caribbean. In 2004, in the
space of just over a month, Hurricanes Charley, Frances, Ivan and Jeanne
lashed out across the Caribbean, leaving hundreds of thousands of people in
dire need of the most basic essentials. As Charley and Frances swept across
island nations like Grenada, DIAGEO provided large generators to power to
waste disposal, water supply and law enforcement services. Four days later,
our focus moved to the victims of Hurricane Ivan in the Caribbean, where
DIAGEO airlifted disaster relief to Kingston, bringing food and emergency
supplies to a devastated Jamaica. In 2008, DIAGEO came to the rescue
of a much-battered Haiti, which had been pummeled by Hurricane Ivan
and then by three successive hurricanes (Fay, Gustav and Hanna) leaving
millions stranded and without sustenance. Within days, care packages,
dubbed ‘Buckets of Hope’ were distributed in the southwest of Haiti, where
international relief organizations had still not been able to reach.
‘Spirit of the Americas’ is a unique humanitarian relief program
created by DIAGEO with the simple mission that communities
in which we operate could call upon DIAGEO for emergency
help in the first hours of any disaster. Often times, we are able
to spring into action before governments and established relief
organizations are able to.
Following Tropical Storm Ida’s devastating impact to El Salvador on
November 7, 2009, ‘Spirit of the Americas’ donated US$30,000 and partnered
with the Pan American Development Foundation (the humanitarian arm
of Organization of American States) to administer disaster relief. A DIAGEO
delegation was sent to El Salvador to assist in the distribution of emergency
supplies including food, water, hygiene kits, medical supplies, and medical
attention for three months targeted towards affected families. The supplies
were distributed in Oratorio de Concepción, Cuscatlán, San José Guayabal,
Cuscatlán and Tonacatepeque, San Salvador, which are amongst the poorest
areas in the country.
EARTHQUAKE RELIEF
Each ‘Spirit of the Americas’ humanitarian relief effort is coordinated by
DIAGEO employees working in partnership with local government agencies
and disaster relief organizations in the affected areas. A DIAGEO senior
manager accompanies the cargo to the impacted region. The benefits
for people helped by ‘Spirit of the Americas’ are tangible – swift relief
from difficult situations. There are also benefits for DIAGEO – helping our
employees live the DIAGEO values and satisfy their desire to make a practical
contribution within their communities. We have also earned the trust and
respect of important stakeholders around the world who now have a better
idea of who we are, what we stand for and have first-hand experience with
our commitment to helping communities in need. In recent years we have
helped rebuild the collapsed Trinidad Tunnel in Baruta, Venezuela, and
provided much-needed assistance after the earthquakes in Peru in August
2007 and Colombia in May 2008.
In January 2010, just three days after the devastating Haiti earthquake,
we delivered 45,000 lbs of disaster relief including new World Health
Organization (WHO) sanctioned emergency health kits. The kits contained
enough materials to provide basic medical care to more than 10,000 people
for 90 days, which was critical as every hospital in Haiti was either damaged
or destroyed by the earthquake. We also sent food supplies including beans,
rice, cooking oil and Ensure diet supplement.
Despite the devastation we are also proud that we managed to sustain
our ‘Learning for Life’ program, ‘Project Entrepreneur’, which launched in
Haiti just one month before the earthquake and continues to offer hope to
many affected people as the slow process to rebuild the country continues.
Just two weeks following the earthquake, classes were in session in Portau-Prince. Students assembled outside the make-shift training facility under
blue tarps and continued their training. Eager to help their communities,
class sizes actually managed to swell under these sub-par conditions.
In October 2010, in two separate graduation ceremonies held in Portau-Prince and the seaside town of Les Cayes, 748 students received their
certificates, endorsed by the Ministry of Education, with a total of 948
students graduated in 2020.
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8
PRESERVING OUR COMMUNITIES
the environment. We hope to grow the awareness for the environment for
the good of the communities in which we live and operate for generations
to come.
NAVARRO CORREAS WINERY
SUSTAINED ENVIRONMENT
We aim to achieve continuous improvement in environmental
performance, concentrating our efforts on areas of greatest
impact at our manufacturing, distribution and large office sites –
in particular the use of energy, release of greenhouse gases and
the management of water and waste. The DIAGEO environmental
policy ensures that all of our facilities are challenged to keep
improving their performance in these areas. All production sites
operate an environmental management system and 22 or 55% of
these are certified to ISO 14001 standards. The policy covers the
supply chain, transportation, energy and water management.
In 2009, DIAGEO became one the first companies in Scotland
(home to all our Scotch whisky distilleries) to receive official
certification under a new initiative known as The Carbon Trust
Standard. This is the world’s first carbon certification initiative
which shows organizations have measured, managed and
genuinely reduced their carbon footprint year-on-year, rather
than offsetting emissions or only talking about action.Below
are some of the initiatives and improvements that DIAGEO has
made across Latin America and the Caribbean to better preserve
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A bold example of DIAGEO’s commitment to sustainability in Latin America
is the new winery ‘Finca Agrelo’ for NAVARRO CORREAS® in Argentina. This
US$14 million state-of-the-art winery has been lauded for its many efforts
to increase total water recycling, minimize waste production and maximize
energy efficiency, resulting in a gold medal for Sustainable Practices in Wine
Tourism in the ‘Great Wine Capitals Best of Wine Tourism’ 2010 international
competition.
In Mendoza, a famed wine region, we recently completed building a new
winery for the super premium wine segment. The project was designed to
produce not only the best wines in Latin America but also become one of the
most environmentally friendly wine producing facilities in the world. We are
proud that it is the first winery in which 100% of water used in production is
reused to irrigate the land.
In our other Navarro Correas facility located in Godoy Cruz, with some
innovation and much forward thinking, we succeeded in reducing the rate
of water consumption by 60%, the equivalent to 59.000m3 of water over the
past two years. Energy consumption fell by 12% (70,000 Kwh of electricity),
and the generation of waste has been reduced by 67% (181 tons). 97% of the
waste generated has been recycled in its entirety as part of the Sustainable
Packaging Standards. Bottles, corks (natural and synthetic), capsules, labels,
boxes, and dividers have both been recycled and used for promotion of
the initiatives.
Navarro Correas is one of only two wineries in Argentina to earn four
international certifications for Management System of Environment, Quality
SMIRNOFF RECYCLING PROJECT
Another innovative pilot that we’re testing in Brazil invites consumers to
return empty SMIRNOFF® bottles to the place of purchase. Partnering with
Carrefour, the empty SMIRNOFF bottle is put into a branded recycling
machine and the consumer is rewarded with a promotion on his next
purchase. Further developments in the execution of this test and the
technology involved are being continually worked on and will lead to an
even greater positive impact on the environment, not to mention a change
in consumer attitude towards recycling.
Process, Occupational Health and Safety and Food Safety. Our Navarro
Correas facility adheres to the following global regulations:
•ISO 14000 (environment)
REDUCING THE RED STRIPE FOOTPRINT
In 2009, the Jamaican Chamber of Commerce awarded DIAGEO with the
Environmental Protection Awareness Award for our various energy and waste
reduction projects. Well ahead of global standards, our facilities in Jamaica cut
the solid waste generated by 43% and the amount of fossil fuels used by 23%
year over year.
•ISO 9001 v 2000 (process quality)
•ISO 18,001 (hygiene & occupational safety)
•HACCP (food safety)
“
In another project in Brazil, an ongoing effort has saved 5,600 tons of CO2
emissions over the course of a year by reducing the size of Smirnoff bottles
by 18%, from 200g to 165g. The measure has also delivered cost savings of
£362,000.
The Carbon Trust Standard is the only credible way to show which organizations have
taken action on climate change by reducing their carbon emissions, as well as helping
brands stand out from the crowd.
- Harry Morrison
”
Carbon Trust Standard
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9
RECOGNITION
Other Pan-Regional Awards
• PR News CSR Awards: Randy Millian CEO of the Year 2009
• International Kids Fund and United Way: Randy Millian
Corporate Generosity Award 2009
• DIAGEO received the 2010 Beverage World Beacon Award for our
aid to Haiti from the Beverage World Publications Group
• J&B “Start a Party” in Usuahia received the Editorial Dossier Silver Pen
Award for the 2009 best promotional marketing activity of the year
• Jamaican Chamber of Commerce Awards: Best of Chamber
(Large Enterprise) and Environmental Protection Awareness Award
Recognition for DIAGEO in the
Latin America & Caribbean
Great Place to Work® Institute Rankings:
• Central America and Caribbean: 2010 (#12), 2009 (#5), 2008 (#4)
• Argentina: 2010 (#5), 2009 (#29), 2008, 2007, 2006 (#10), 2005
• Brazil: 2010 (#25), 2009, 2008, 2007, 2006, 2005
• Colombia: 2010 (#25), 2009 (#9), 2008 (#2), 2006, 2005
• Mexico: 2010 (#25), 2009 (#23), 2008, 2007 (#8), 2006 (#6), 2005, 2004
• Uruguay: 2010 (#5), 2009 (#8), 2008 (#3), 2007 (#8), 2006 (#7)
• Venezuela: 2010 (#13), 2009 (#13), 2008 (#9), 2007 (#3), 2006 (#5)
* Rankings within the top thirty are provided in parentheses.
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• Most Admired Company in the alcohol beverage sector by
The Economist/Carta Capital
• Manufacturer of the Year, Jamaica Manufacturers Awards
35
10
SUMMARY & MORE ABOUT DIAGEO
36
This is a very exciting time for DIAGEO. While we are proud of our
accomplishments thus far, we believe over the coming years much more is
possible, yet much more innovation, commitment and active participation
will be required in the effort to further increase the positive impact our
operations and value chain have on the environment, local stakeholders,
consumers, business partners and other stakeholders.
As Latin America and the Caribbean continues to flourish, DIAGEO is
committed to increasing our corporate social responsibility efforts and
further enhance our thought leadership position across the region in
everything we do to build and contribute towards Enriched Communities.
DIAGEO is not the kind of company that rests on its
laurels. Just as we nurture the legacy of our historic
brands we continue to innovate for the future. We
celebrate our success in corporate social responsibility,
while continuing to evolve our approach in order to
meet stakeholder expectations. In short, we strive to
‘be the best.’ This is a core DIAGEO value: we are always
learning, always improving. We set high standards,
stretch to exceed them, and celebrate success.
•We have reaffirmed that corporate social responsibility
is integral to our purpose
•We decided to better integrate our work throughout
our value chain, especially with our suppliers, our
customers and our consumers among others to better
leverage our positive impact
•We identified alcohol in society, our role in the
community, our environmental impact, our people
and ethics and compliance to be our key priorities
•We decided to place additional emphasis on cross functional initiatives to ensure that our priorities
were better integrated throughout our value chain:
•Sustainable and ethical sourcing to better engage
our suppliers on our priorities
•Consumer and Customer CSR activities to
integrate our CSR aspirations into our Brand
marketing and work with customers
•Local economic development to ensure we
are leveraging the full impact of our business
in the communities in which we operate
We are only at the beginning of this journey. While we have begun to
engage external stakeholders, over the course of the next year we hope
to continue to validate our findings to determine whether our strategy
meets the needs and concerns of the external groups and individuals who
are most impacted by our business. We will also work to develop or further
enhance our performance indicators for each priority. In next year’s report,
you will find the outcome of these conversations.
This is a very exciting time for us. While we are proud of our accomplishments
thus far, we believe our refreshed strategy will even further increase the
positive impact our operations and value chain have on the environment,
our local stakeholders, our consumers, our business partners and other
stakeholders.
We recognize this process comes with challenges – addressing diverse
expectations, identifying the points at which our shareholders’ interests
intersect with other stakeholder expectations, and embedding sustainability
management throughout our operations. However, we are up for the
challenge because we believe the outcome will help drive value for both
society and our business. We look forward to continued collaboration over
the course of the year to help ensure we make the best possible contribution.
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‘Learning For Life’ Students
38
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DIAGEO and should not be copied, broadcast,
uploaded or otherwise used without the express
prior written permission of DIAGEO.
Latin America & Caribbean Hub
5301 Blue Lagoon Drive - 8th Floor
Miami, FL 33126
www.DIAGEO.com
© DIAGEO 2010