DIAGEO AT A GLANCE

DIAGEO AT A GLANCE
Diageo is the world’s leading premium
drinks business with an outstanding
collection of beverage alcohol brands across
spirits, wine and beer categories. These
brands include: Johnnie Walker, Smirnoff,
Baileys, Captain Morgan, Jose Cuervo, J&B,
Tanqueray, Guinness, Crown Royal, Sterling
Vineyards wines and Beaulieu Vineyard
wines and Bushmills Irish whiskey.
MEDIA OFFICE CONTACTS
Diageo is a global company, with
products sold around 180 markets over
the world. The company is listed on both
the London Stock Exchange (DGE) and
the New York Stock Exchange (DEO).
CECILIA COONAN
Press Officer
We employ over 20,000 talented people
worldwide with offices in around 80
countries. Our manufacturing facilities
are located across the globe including
Great Britain, Ireland, United States, Canada,
Italy, Africa, Latin America, Australia and
the Caribbean.
JAMES CRAMPTON
Head of Financial
Communications
ROWAN PEARMAN
Head of Corporate PR
LISA CRANE
Senior PR Manager
RACHAEL SHAW
PR Manager
TO CONTACT THE PRESS OFFICE
[email protected]
+44 20 8978 6000
DIAGEO plc
Lakeside Drive
Park Royal
London
NW10 7HQ
Diageo was formed in 1997, following
the merger of GrandMet and Guinness,
and is headquartered in London. 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.
1
OUR STRATEGY
OUR STRATEGY IS TO DRIVE ORGANIC
GROWTH IN PREMIUM DRINKS. WE
WILL INVEST TO TAKE LEADERSHIP
POSITIONS IN EVERY CATEGORY,
MARKET AND CONSUMER OCCASION
IN WHICH WE CHOOSE TO COMPETE.
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
We aim to drive brand growth by exploiting complete
category participation opportunities, rather than solely
focusing on individual brands within categories. Key
categories include scotch whisky, vodka and rum.
Our focus on our global priority brands in their
most profitable markets helps drive growth of our
global brands – Johnnie Walker, Smirnoff, Captain
Morgan, Baileys and Guinness. We look to invest
more resources into these and other brands with
the best growth prospects.
As part of our innovation agenda we place an
increased emphasis on premium brands, striving
to build the best premium brands collection
in the industry.
We will look for opportunities and to build scale
in developing markets to drive growth tomorrow.
Finally, we seek out selective acquisitions to support
our buisness’ growth, we invest behind innovation
and focus on customer strategies where they can
add long term shareholder value.
Our customer and consumer insights form the
basis of our growth. We cherish our brands and
we are creative in pursuing their full potential.
Moreover, we recognise the integral role of
the customer, and our ambition is to build a
culture where the customer sits alongside the
consumer at the heart of our business.
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.
2
PERFORMANCE
YEAR ENDED
30 JUNE 2010
Volume
Sales
Operating
profit
YEAR ENDED
30 JUNE 2009*
143.4m
(9-litre equivalent cases)
Volume
140.8m
(9-litre equivalent cases)
£12,958m
Sales
£12,283m
£2,751m
Operating
profit
£2,588m
(pre exceptionals)
(pre exceptionals)
Marketing
spend
£1,419m
Marketing
spend
£1,327m
Free cash flow
£2,024m
Free cash flow
£1,204m
ROIC**
14.8%
ROIC**
14.5%
Full year
dividend
38.10p
Full year
dividend
36.10p
KEY DATES
14 October 2010 Interim management statement
26 August 2011 Full year results
14 October 2010 AGM
1 July to 30 June Financial year
* Restated for accounting changes. See preliminary results announcement for the year ended 30 June 2010 for detailed information
** Using an underlying tax rate 21.6% (2009 22.1%)
3
OUR MARKETS
Ivan Menezes
President,
Diageo North America
and Chairman Asia Pacific
Andrew Morgan
President,
Diageo Europe
Stuart Fletcher
President,
Diageo International
Gilbert Ghostine
President,
Diageo Asia Pacific
NET SALES BY REGION
YEAR ENDED 30 JUNE 2010 (EXCLUDING CORPORATE)
34%
OF NET SALES
28%
OF NET SALES
27%
OF NET SALES
11%
OF NET SALES
4
NORTH AMERICA
NORTH AMERICA*
North America accounts for over a third of our total business
and is our most developed market. Diageo North America
includes both the United States and Canada.
TOP BRANDS
Smirnoff
Captain Morgan
Jose Cuervo
Crown Royal
•
•
•
•
NO.1 PREMIUM VODKA
NO.1 SCOTCH WHISKY
NO.1 CANADIAN WHISKY
Source: Impact Databank February 2010
• ALTHOUGH SOME SIGNS OF RECOVERY
HAVE BEEN SEEN REGIONALLY IN NORTH
AMERICA, THE ECONOMY AND CONSUMER
CONFIDENCE REMAINED WEAK.
• STRONG SHARE GAINS IN CORE BRANDS
WHERE WE MAKE OUR BRANDS
Diageo owns eight production facilities throughout the USA
and Canada producing spirits and ready to drink products as
well as vineyards and wineries in California and Washington.
JOHNNIE WALKER, CAPTAIN MORGAN AND
CROWN ROYAL.
• RESERVE BRANDS PERFORMED STRONGLY
DRIVEN BY CIROC AND KETEL ONE VODKA
AS INNOVATION AND IMPROVED ON TRADE
DELIVERED A RETURN TO GROWTH IN THE
SUPER PREMIUM SEGMENT.
• DIAGEO’S BEER BRANDS, ESPECIALLY GUINNESS,
OUTPERFORMED OTHER IMPORTED BEERS.
• MARKETING SPEND WAS SIGNIFICANTLY UP
WEIGHTED IN THE SECOND HALF OF FISCAL
2010, UP 20% BEHIND PROVEN GROWTH
DRIVERS ON KEY BRANDS AND INNOVATION.
• DIAGEO WAS THE ONLY ONE OF ITS
COMPETITIVE SET TO GROW VALUE SHARE
IN THE PERIOD ACCORDING TO IRI
(RETAIL INDUSTRY DATABASE).
* For the year ended 30 June 2010
5
EUROPE
EUROPE*
Europe accounts for about a third of our total business.
There are six business units in Diageo Europe:
1. GREAT BRITAIN
2. IRELAND
3. IBERIA Spain, Portugal and Canary Islands
4. NORTHERN EUROPE France, Germany, Switzerland, Austria,
the Nordics, Luxembourg, Belgium and the Netherlands
5. SOUTHERN EUROPE Greece, Italy and Turkey as well
as Guinness Continental Europe
6. RUSSIA AND EASTERN EUROPE Poland, Bulgaria, Romania,
Hungary, Croatia, Cyprus, Czech Republic, Israel, Serbia, Iceland,
Finland, Slovakia, Albania, Malta, Montenegro, FYR of Macedonia,
Bosnia Herzegovina, Slovenia, Latvia, Estonia, Lithuania, Ukraine,
Belarus, Turkmenistan, Armenia, Georgia, Azerbaijan, Kazakhstan,
Moldova, Uzbekistan, Kyrgyzstan and Tajikistan
TOP BRANDS
Smirnoff in GB
Guinness in Ireland and GB
White Horse in Russia
•
•
•
WHERE WE MAKE OUR BRANDS
With 4 maltings, 28 malt distilleries, 1 grain distillery, three
production plants and ten major warehousing and blending
sites, we are the largest single producer of Scotch whisky.
Our 28th malt distillery opened in Scotland in 2009.
Diageo also has 12 production facilities throughout
Ireland, producing brands such as Guinness in the world famous
St. James’s Gate brewery, Baileys in Dublin and Belfast and
Bushmills in the oldest royal licensed distillery – granted in 1608.
Santa Vittoria, our site in Italy, produces many of our ready
to drink brands, such as Smirnoff Ice.
NO.1 PREMIUM VODKA IN GB
NO.1 SCOTCH IN GREECE
Source: Impact Databank February 2010
• EUROPE REMAINED A CHALLENGING
REGION, IMPACTED BY WEAK CONSUMER
CONFIDENCE AND ECONOMIC UNCERTAINTY.
• STRONG PERFORMANCE IN GREAT
BRITAIN WHERE A SUCCESSFUL FOCUS
ON CUSTOMERS INCREASED VISIBILITY
OF DIAGEO’S BRANDS IN THE OFF TRADE
DURING CRITICAL SELLING PERIODS.
• DIAGEO ALSO DELIVERED A STRONG
PERFORMANCE IN RUSSIA WITH DOUBLE
DIGIT GROWTH IN BOTH VOLUME AND NET
SALES DRIVEN BY JOHNNIE WALKER, WHITE
HORSE AND BELL’S IN THE SECOND HALF.
• TRADING IN SOUTHERN EUROPE MARKETS
REMAINED PARTICULARLY DIFFICULT
EFFECTED BY CHANGING CONSUMER
TRENDS, INCREASED EXCISE TAX IN GREECE
AND REDUCED CONSUMER SPENDING.
* For the year ended 30 June 2010
6
INTERNATIONAL
INTERNATIONAL*
International is a challenging region, rich in potential due in part
to its sheer size and geographic spread. Diageo International
consists of the following three regional hubs:
1. LATIN AMERICA AND THE CARIBBEAN Diageo operates
across 44 different countries in South and Central America
and the Caribbean
2. AFRICA Diageo Africa includes Cameroon, Ghana,
Kenya, Mauritius, Nigeria, Reunion, Seychelles, South Africa,
Tanzania and Uganda
3. GLOBAL TRAVEL AND MIDDLE EAST
NO.1 SCOTCH IN VENEZUELA, BRAZIL
NO.1 PREMIUM VODKA IN BRAZIL
Source: Impact Databank February 2010
TOP BRANDS
Johnnie Walker in Latin America
and Global Travel and Middle East
Guinness in Nigeria
Buchanan’s in Latin America
•
•
•
• IMPROVED GROSS MARGINS CONTRIBUTED
TO OPERATING PROFIT GROWTH OF 25%.
• NET SALES GROWTH OF 15% IN LATIN
AMERICA AND THE CARIBBEAN DUE
TO THE GROWTH OF SCOTCH, LED BY
JOHNNIE WALKER, AND RUM CATEGORY,
LED BY CACIQUE.
• IN AFRICA NET SALES GREW 10% DRIVEN
BY THE STRONG PERFORMANCE OF LAGER,
IN PARTICULAR HARP IN NIGERIA AND
TUSKER IN KENYA.
• NET SALES GROWTH OF 19% IN GLOBAL
TRAVEL AND MIDDLE EAST SUPPORTED
BY INCREASED MARKETING SPEND AND
THE STRONG PERFORMANCE OF THE
PREMIUM AND SUPER PREMIUM SEGMENTS,
PARTICULARLY JOHNNIE WALKER BLACK LABEL.
WHERE WE MAKE OUR BRANDS
Diageo produces the world-famous Red Stripe lager and
Myers’s rum in Jamaica. Rum and rum based products such
as Captain Morgan and Cacique are produced in Latin America.
Cacique and Pampero rums are both distilled in Venezuela
with Jose Cuervo being produced in Mexico.
* For the year ended 30 June 2010
7
ASIA PACIFIC
ASIA PACIFIC*
Asia Pacific offers a broad collection of brands across diverse
markets and some unique and exciting opportunities for growth.
Diageo Asia Pacific consists of the following markets/hubs:
1. GREATER CHINA the People’s Republic of China,
Hong Kong and Taiwan
2. AUSTRALIA Australia, New Zealand and South Pacific
3. INDIA India, Sri Lanka and Maldives
4. NORTH ASIA Japan and Korea
5. SOUTH EAST ASIA Thailand, Malaysia, Indonesia, Philippines,
Singapore and Vietnam
NO.1 SCOTCH IN KOREA
NO.1 SCOTCH IN INDIA
Source: Impact Databank February 2010
TOP BRANDS
Johnnie Walker in South East Asia
Guinness in South East Asia and Japan
Windsor in Korea
•
•
•
• RETURN TO GROWTH IN THE SECOND HALF
OF FISCAL 2010 DRIVEN BY THE STRONG
PERFORMANCE OF JOHNNIE WALKER AND
IMPROVED RESULTS FROM ALL GLOBAL
PRIORITY BRANDS.
• DOUBLE DIGIT GROWTH IN SOUTH EAST
ASIA AND STRONG GROWTH IN TAIWAN
AND THAILAND OFFSET DESTOCKING IN
INDIA AND DECLINE IN MORE MATURE ASIAN
MARKETS OF KOREA AND JAPAN.
• OPERATING PROFIT GREW 6% DRIVEN BY
THE INCREASED SALES OF HIGHER MARGIN
BRANDS JOHNNIE WALKER AND GUINNESS.
• ENHANCED ROUTES TO MARKET IN JAPAN
DRIVING IMPROVED MARGIN AND VIETNAM,
A KEY GROWTH MARKET.
* For the year ended 30 June 2010
8
GLOBAL SUPPLY
GLOBAL SUPPLY
Global Supply is a separate business unit within
Diageo which brings together our six supply
centres across the world, where our brands are
made. Global Supply is responsible for the total
supply chain, from material procurement
through to delivery to the customer.
David Gosnell,
Managing director,
Global Supply and
Global Procurement
CONVERSION INTO BEVERAGE ALCOHOL
RAW MATERIALS
PACKAGING
WHERE DO WE MAKE OUR BRANDS?
Menlo Park
• There are additional global supply locations and manufacturing plants, the majority are wholly owned facilities
9
BRANDS
ALTHOUGH DIAGEO HAS OVER 150
BRANDS, WE FOCUS THE MAJORITY
OF OUR RESOURCES ON OUR GLOBAL
PRIORITY BRANDS
Our global priority brands are our largest brands and those
which either have, or are expected to have, a critical presence
in a significant number of our markets around the world. These
brands have a consistent consumer positioning throughout the
world and substantial growth potential.
Seventeen of Diageo’s owned or managed brands were among
the top 100 premium distilled spirits brands worldwide as
ranked by Impact in calendar year 2010. Diageo manages
eight out of the top 20 premium spirits brands in the world.
(Source: Impact Databank February 2010).
GLOBAL PRIORITY BRANDS
We are focused on our eight global priority brands,
the engine of our growth.
RESERVE BRANDS GROUP
If you go into a bar in many of the world’s major cities, you’ll
see consumers seeking a luxury experience when they order
a drink. Our reserve brands team is dedicated to capitalising
on this trend.
The reserve brands team combines our ability to innovate,
produce targeted marketing and answer consumer demand for
super premium spirits. While this is a small part of our business,
the profit derived from these brands is high. We believe this is
a sustainable marketing approach that can be implemented
around the world.
GLOBAL PRIORITY BRANDS*
NO.1 IN THE GLOBAL
VODKA CATEGORY
NO.1 IN THE GLOBAL SCOTCH
WHISKY CATEGORY
NO.2 IN THE GLOBAL
RUM CATEGORY
NO.1 IN THE GLOBAL
LIQUEUR CATEGORY
NO.4 IN THE GLOBAL SCOTCH
WHISKY CATEGORY
NO.1 IN THE GLOBAL
TEQUILA CATEGORY
NO.1 IN THE US IMPORTED
GIN SEGMENT
NO.1 IN THE GLOBAL
STOUT CATEGORY
RESERVE BRANDS
+
BEER
WINE
* Source: Impact Databank February 2010
+ Diageo
is the global distributor of Zacapa rum (except for Central America and Guatemala Duty Free)
10
BRANDS
STRONG REGIONAL BRANDS
Alongside our global priority brands, we have an outstanding range of strong regional brands which have a strategic importance
within one or more individual markets.
SOME OF DIAGEO’S STRONG REGIONAL BRANDS INCLUDE:
AREA
BRAND
AREA
Great Britain
Gordon’s
North America Crown Royal
Bell’s
BRAND
Ketel One
Jamaica
Red Stripe
Russia
White Horse
South Korea
Windsor
Premier
Kenya
Tusker
Venezuela
Buchanan’s
11
INNOVATION
MARKETING AND INNOVATION
Andy Fennell,
Chief marketing officer
Through our global innovation programme we
are constantly looking for new ways to excite
and attract consumers to our brands. Diageo’s
innovation agenda focuses on innovating against
our core premium brands, responding to global
consumer trends and up-weighting our gifting
and limited edition offering, whilst maintaining
a healthy pipeline for the future. We have an
approach in place which allows us to seize
opportunities with speed and agility and respond
to both consumer and shopper trends.
• Johnnie Walker Double Black
• Cîroc flavours
• Crown Royal Black
• The John Walker
• Benmore Four Casks
• Smirnoff Blue flavours
to serve cocktails such as the Smirnoff range,
• Ready
J&B Manhattan and Pampero Mojito
• Jeremiah Weed Sweet Tea
• Ketel One Oranje
• Alvaro
• Old Parr Superior
• Bundaberg Red
• The Singleton range
• Premix cans and bottles
12
SUSTAINABILITY
DIAGEO HAS COMMITTED ONE
PERCENT OF ITS OPERATING PROFIT
TO SOCIAL INVESTMENT AND
COMMUNITY PROJECTS.
OUR APPROACH TO SUSTAINABILITY
We recognise that our sustainability as a business depends not
only on our economic performance, but also on the way we
manage our social and environmental impacts.
THERE ARE THREE KEY ELEMENTS TO OUR
SUSTAINABILITY STRATEGY:
1 ALCOHOL IN SOCIETY
We are proud that so many people choose Diageo brands for
simple enjoyment or to accompany great times in their lives.
But we also know that some people consume alcohol irresponsibly.
We believe we can make a contribution in some key areas, including:
We aim to set world-class standards for responsible marketing
2009, we refreshed the Diageo Marketing Code. This code has
• Inclarified
compliance standards and accountabilities. We also have
updated our digital standards for marketing through new media,
such as mobile phones and social networking channels. We
continue to extend our responsible marketing practices across
all digital platforms, including brand websites, social networks
and mobile applications and actively work with others to put self
regulatory codes in places in markets where they do not exist.
Working directly or with others, we are running over
130 responsible drinking initiatives in over 40 countries
These include anti drink-drive campaigns and support
• for
programmes that combat underage drinking. www.
DRINKiQ.com was launched in 2008 aimed to encourage
sharing of best practice tools, information and initiatives to
promote responsible drinking. The site is available in a global
version and there are 20 dedicated local sites in 18 countries.
the International Center for Alcohol Policies (ICAP),
• ofIn 2010
which Diageo is a member, launched the Global Actions
on Harmful drinking to help reduce the harmful use of alcohol
in 18 low and middle income markets.
2 COMMUNITY INVESTMENT
Our record of community investment goes back many years.
We focus on projects that develop skills, increase access to water,
support our employees or respond to disasters.
America, we launched a Learning for Life programme
• toIn Latin
provide disadvantaged people with the skills they need to
compete in society. Working in partnership with educational
and training organisations, the target is to improve the lives
of 50,000 people by 2011.
a devastating earthquake hit Haiti in January 2010, we
• When
launched an employee fundraising programme. So that funds
raised reached the people in most need, a small team from Diageo
Latin America and Diageo North America worked with The Bridge
Foundation to provide on the ground assistance in Haiti. Working in
Port-au-Prince the team helped to ensure that the aid contributed
by Diageo and Diageo employees made it to its intended
destination. That aid included water, food and medical supplies.
3 REDUCING OUR ENVIRONMENTAL IMPACT
We depend on a healthy and stable environment for the water
and natural ingredients we need to make our brands. We also
have a strong environmental ethic in our company that drives
us to minimise our impacts on the environment.
We have developed targets to make improvements in our
own environmental performance including:
in our carbon impact
• aanreduction
improvement
in our water efficiency
• decreased waste-to-landfill
• a reduction in water pollution
•
We recognise that our employees have a huge role to play
in this area and we continue to develop and implement
innovative employee engagement programmes as we believe
in the power of grassroots efforts to make a real difference
To mark the United Nations World Environment Day in June
• 2010,
teams of Diageo volunteers led various awareness
activities to engage employees on environmental issues.
was an official participant in the WWF’s Earth Hour
• inDiageo
March where individuals shut off their lights for one hour
to combat climate change.
Enriching communities through investment and action
we are committed to providing clean water
• toIn Africa,
1 million people per year until 2015 – the total number
of beneficiaries to date is 4.3 million.
13
PEOPLE
BOARD AND EXECUTIVE COMMITTEE
BOARD OF DIRECTORS
Dr Franz B Humer
Chairman
Dr Franz Humer was appointed chairman of Diageo plc with
effect from 1 July 2008, having been a non-executive director
since April 2005. He is also chairman of F. Hoffmann-La Roche
Limited in Switzerland and chairman of INSEAD’s board of
directors. He was formerly chief operating director of Glaxo
Holdings plc and has held a number of other non-executive
directorships. During the year, he resigned as a non-executive
director of Allianz Versicherungs AG in Germany.
NON-EXECUTIVE DIRECTORS
Peggy Bruzelius
Laurence M Danon
Lord Hollick of Notting Hill
Betsy D Holden
Philip G Scott
Todd H Stitzer
Paul A Walker
EXECUTIVE COMMITTEE
Paul S Walsh
Chief executive
Nicholas C Rose
Chief financial officer
Paul S Walsh
Chief executive
Paul Walsh was appointed chief executive of Diageo plc in
September 2000, having been chief operating officer since
January 2000. He has served in a number of management roles
since joining GrandMet’s brewing division in 1982, including
chief executive officer of The Pillsbury Company. He was
appointed to the GrandMet board in October 1995 and to the
Diageo plc board in December 1997. He is a non-executive
director of Unilever PLC and is also a member of the Business
Council for Britain, Chairman of the Scotch Whisky Association
and director for FedEx Corporation. During the year he retired
as a member of the Council of the University of Reading.
Ron Anderson
Chief customer officer
Nicholas B Blazquez
MD Diageo Africa
Andrew Fennell
Chief marketing officer
Stuart R Fletcher
President, Diageo International
Gilbert R Ghostine
President, Diageo Asia Pacific
David Gosnell
Managing director, Global Supply and Global Procurement
James N D Grover
Global Business Support Director
Nicholas C Rose
Chief financial officer
Nicholas C Rose was appointed chief financial officer of Diageo
plc in July 1999. He will retire as chief financial officer and be
succeeded by Deirdre Mahlan on 1 October 2010, and will retire
as a director of Diageo plc at the AGM on 14 October 2010. He
has served in a number of finance roles since joining GrandMet
in June 1992, including group treasurer and group controller and
was appointed to the Diageo plc board in June 1999. He is also
a member of the Main Committee of the 100 Group of Finance
Directors and during the year, was appointed a non-executive
director of BAE Systems plc.
Deirdre Mahlan
Deputy chief financial officer
Ivan M Menezes
President, Diageo North America
and Chairman Diageo Asia Pacific
John R Millian
Managing director Diageo Latin America and the Caribbean
Andrew Morgan
President, Diageo Europe
Timothy D Proctor
General Counsel
Larry Schwartz
President Diageo USA
Gareth Williams
Human Resources director
Ian Wright
Corporate Relations director
14
OUR JOURNEY
and Guinness merge; United Distillers & Vintners (UDV) created from the
1997 • GrandMet
integration of the IDV and UD businesses
Walsh becomes CEO
2000 •• Paul
Diageo undertakes a strategic realignment of its business, deciding to focus on
beverage alcohol
2001
• Lord Blyth of Rowington succeeds Sir Anthony Greener as chairman
• Diageo completes the acquisition of the Seagram spirits and wine business
• Diageo completes the disposal of Pillsbury and reduces its shareholding in General Mills to 21%
• Diageo completes the disposal of Burger King to a consortium led by Texas Pacific
2002
reorganises its markets into three regional divisions: North America,
2004 • Diageo
Europe and International
substantially reduces its shareholding in General Mills, further moving towards
• Diageo
final exit from food business
completes the acquisition of the Chalone wine group
2005 •• Diageo
Diageo sells final stake in General Mills, completing exit from food business
2006
• Diageo completes the acquisition of Bushmills Irish Whiskey
and A1, an Alfa group company, create a strategic partnership for expansion in
• Diageo
Russia. Through the joint venture, Diageo acquires a majority interest in the Smirnov brand
and business, which will form the basis of the new operation in Russia
of Diageo’s Asia Pacific region borne out of existing hubs within Diageo
2007 • Creation
International regrouping Asia, Greater China, India and Australia
2008
acquires 43% of the equity of Sichuan Chengdu Quanxing Group Company Ltd
• Diageo
in China and indirectly 17% in the ShuiJingFang Co. Ltd
• Diageo announces £100m investment in the future of scotch whisky
• Diageo acquires Rosenblum Cellars
• Diageo signs global distribution and joint marketing agreements for Zacapa Centenario Rum
• Diageo, Heineken and Namibia breweries announce joint ventures in South Africa
and the Nolet family form a 50/50 company which owns the perpetual exclusive
• Diageo
rights to sell, market and distribute Ketel One vodka worldwide
celebrated its 250th anniversary of the signing of the 9,000 year lease
2009 • Guinness
on St. James’s Gate brewery in Dublin
reaches an agreement with Namibia Breweries Limited to produce and distribute
• Diageo
Windhoek beer globally
launches a new ultra-premium vodka in collaboration with ShuiJingFang,
• Diageo
producers of the world famous premium baijiu
2010
in November 2010, Roseisle is the first new malt distillery of scale to be built in
• Opening
Scotland for 30 years and has been constructed using a combination of the most modern
•
•
environmental technology combined with traditional distilling techniques.
The new state-of-the-art Sedibeng Brewery, south of Johannesburg, opens on 25 March 2010.
The Brewery, owned 75% by Heineken with Diageo holding a 25% stake, brews and bottles
a range of premium beers including Amstel, Heineken and Windhoek Lager for the local
market, and the supply of leading Ready to Drink brands Smirnoff Spin and Smirnoff Storm.
Diageo announces it has entered into a sale and leaseback arrangement in respect to
certain land and facilities in Napa Valley, California valued at approximately US $260
million. The land and facilities are purchased and leased back to Diageo under a 20 year
lease, with Diageo holding options to extend the lease for up to 80 years in total. Diageo
Chateau and Estate wines (DC&E) remains the operator of the properties under the lease
agreement and retains ownership of the brands, vines and grapes.
15
CREATION OF DIAGEO
MERGING TWO INDUSTRY LEADERS
Formed in December 1997, Diageo was created following the merger of GrandMet and Guinness
DIAGEO
GUINNESS
GRAND METROPOLITAN
UNITED
DISTILLERS (UD)
INTERNATIONAL DISTILLERS
& VINTNERS (IDV)
BRANDS INCLUDE
BRANDS INCLUDE
Bell’s
Dewar’s*
Johnnie Walker
Buchanan’s
Gordon’s
Pimm’s
BUSINESSES INCLUDE
Baileys
Bombay*
Burger King
J&B
Bundaberg
Guinness
Red Stripe
Classic Malts
Harp
Tanqueray
Malibu*
Pillsbury
Smirnoff
GUINNESS
BURGER KING
PILLSBURY
Beer
Quick service restaurant
Packaged food
UDV
Spirits and Wines unit was created
from the fusion of UD and IDV
* Bombay Gin brands, Malibu and Dewar’s scotch whisky brands were divested following the merger
16