Diageo plc is a British multinational alcoholic beverages company headquartered in London,
England. It is the world's largest producer of spirits and a major producer of beer and
wine. Diageo's brands include Smirnoff, Johnnie
Walker, Baileys, and Guinness. It also owns 34% of Moët Hennessy, which owns brands including
Moët & Chandon, Veuve Clicquot and Hennessy. It sells its products in over 180 countries
and has offices in around 80 countries. Diageo has a primary listing on the London
Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation
of approximately £48.9 billion as of 7 May 2013, making it the 8th-largest company on
the London Stock Exchange. It has a secondary listing on the New York Stock Exchange.
Name Diageo is an invented name which was created
by the branding consultancy Wolff Olins in 1997. The name is composed of the Latin word
"dies", meaning day, and the Greek root "geo", meaning world, and is meant to reference the
company giving pleasure every day, everywhere. History
Diageo was formed in 1997 from the merger of Guinness and Grand Metropolitan. The creation
was driven by the executives Anthony Greener and Philip Yea at Guinness plus George Bull
and John McGrath of Grand Metropolitan. Shares in Diageo began trading on the London Stock
Exchange on 17 December 1997. Diageo owned Pillsbury until 2000 when it
was sold to General Mills. In 2002, Diageo sold the Burger King fast food restaurant
chain to a consortium led by US firm Texas Pacific for $1.5 billion.
In February 2011 Diageo agreed to acquire the Turkish liquor company Mey Icki for US$2.1
billion. In May 2012 Diageo agreed to acquire Ypioca,
the largest-selling brand of premium cachaça in Brazil, for £300 million.
In June 2012 Diageo announced a £1 billion investment in Scotch whisky production over
the following five years, with at least one new distillery to be constructed, several
existing facilities to be expanded, and overall production capacity to be increased by 30
to 40 per cent. However this did not involve retaining the original Johnnie Walker plant,
in Kilmarnock, which had already closed its doors in March the same year.
In November 2012 Diageo agreed to acquire a 53.4% stake in the Indian spirits company
United Spirits for £1.28 billion. Products
Diageo's beverage brands include: Beer: Guinness, Tusker, Smithwick's, Red Stripe,
Harp Lager, Kilkenny, Kaliber, Windhoek Scotch whisky: Johnnie Walker, Buchanan's,
Cardhu, Justerini & Brooks, Bell's, Black & White, White Horse, Logan, Caol Ila, Vat
69, Oban, Talisker, Lagavulin, Glen Ord, Glenkinchie, Dalwhinnie, Cragganmore, Clynelish, Singleton,
Haig, Royal Lochnagar, Glen Elgin, Knockando, The Dimple Pinch
Vodka: Smirnoff, Cîroc, Silent Sam, Popov, Ketel One
Gin: Gordon's, Tanqueray, Booth's, Nolet's Gin
Rum: Captain Morgan, Bundaberg, Pampero, Cacique, Myers's, Zacapa
Bourbon: Bulleit, Orphan Barrel Canadian whisky: Crown Royal, Seagram's VO
Irish whiskey: Bushmills Tennessee whiskey: George Dickel
Tequila: Don Julio, Peligroso, DeLeón Schnapps: Black Haus, Rumple Minze
Baijiu: Shui Jing Fang Mixed drinks: Archers, Pimm's, Jeremiah Weed,
Smirnoff Cocktails Liqueur: Baileys, Sheridans, Yukon Jack, Godiva
Wines: Sterling Vineyards, Beaulieu Vineyard, Chalone, Piat d'Or, Blossom Hill, Canoe Ridge
Vineyard, Acacia, Moon Mountain, Dynamite, Provenance Vineyards, Hewitt Vineyard, Rosenblum
and Navarro Correas. Diageo also distributes Unicum, its lighter-bodied
variant Zwack, and Grand Marnier which is distributed by Diageo in many markets, including
exclusively in Canada, and a deal was reached in 2009 to expand significantly this partnership
in Europe. Operations
Diageo is the world's biggest whisky producer with 28 malt distilleries and two grain distilleries.
The company operates the Scotch whisky distilleries of Auchroisk, Benrinnes, Blair Athol, Caol
Ila, Cardhu, Knockando, Glen Elgin, Clynelish, Cragganmore, Dalwhinnie, Glenkinchie, Glen
Ord, Lagavulin, Linkwood, Oban, Royal Lochnagar, Strathmill, Talisker, Teaninich, Mannochmore,
Mortlach and Glenlossie, which are sold not only under their own name but used to make
the various blended Scotch whiskies sold by the company, and owns the stock of many closed
distilleries such as Port Ellen, Rosebank, Brora, Convalmore, Glen Albyn, North Brechin,
Banff, and Linlithgow. The company has opened a new malt distillery adjacent to their maltings
at Roseisle. This will be one of the largest malt distilleries in Scotland. The new building
contains 14 traditional copper pot stills. An expansion programme is also underway at
its Cameron Bridge Grain Distillery in Fife that will make it the largest grain distillery
in Scotland. Diageo previously owned the Port Dundas Grain Distillery in Glasgow prior to
its closure and demolition in 2010, and jointly operates the North British Grain Distillery
in Gorgie, Edinburgh, with The Edrington Group. Furthermore, Diageo owns the Gleneagles Hotel
and a 34% stake in the Moet Hennessy drinks division of French luxury goods company LVMH.
Head office Diageo's head office is in Park Royal, London
Borough of Brent, on a former Guinness brewery property. The brewery was closed in 2004;
it had produced beer since 1936. In 1996, Diageo moved to a head office facility
in Henrietta Place, Westminster, City of Westminster. In 2009, Diageo announced that it was closing
the Henrietta Place facility as part of a cost reduction programme. Diageo moved its
employees to the Park Royal site. During that year, about 1,000 employees were located at
the Henrietta Place and Park Royal offices. The lease in the Henrietta facility was scheduled
to expire in 2010. Controversies
In December 2003, Diageo provoked controversy over its decision to change its Cardhu brand
Scotch whisky from a single malt to a vatted malt whilst retaining the original name and
bottle style. Diageo took this action because it did not have sufficient reserves to meet
demand in the Spanish market, where Cardhu had been successful. After a meeting of producers,
Diageo agreed to make changes. On February 4, 2004, Diageo restated last fiscal year's
earnings under U.S. accounting rules, reducing net income by 53 million pounds, or $97 million.
In 2006, the Cardhu brand quietly changed back to being a single malt.
In July 2009, Diageo announced that, after nearly 200 years of association with the town
of Kilmarnock, Scotland they would be closing the Johnnie Walker blending and bottling plant
as part of restructuring to the business. This would make 700 workers unemployed and
caused outrage from press, local people and politicians. A campaign against this decision
was launched by the local SNP MSP Willie Coffey and Labour MP Des Browne. A petition was drawn
up against the Diageo plans, which also involves the closure of the historic Port Dundas Grain
Distillery in Glasgow. Part of the Johnnie Walker operation will be moved to a Diageo
site at Leven, Fife, with the creation of 400 jobs there. As part of this expansion
in Leven, Diageo culled a herd of roe deer living on the site to make way for new buildings.
In February 2009, it was reported in The Guardian that the company had restructured itself so
as to avoid paying tax in the UK. The National Puerto Rican Coalition plans
to run a series of ads in New York City and Puerto Rico urging a boycott of Diageo-owned
alcoholic drinks to protest the corporation’s production move of its Captain Morgan rum
from Puerto Rico to the U.S. Virgin Islands, which will provide it with $2.7 billion in
tax benefits over 30 years. On 9 May 2012 Scottish Craft Brewery BrewDog
revealed that Diageo had threatened to withdraw funding from BII Scotland's annual awards
if BrewDog was to be named winner of the Best Bar Operator award. Diageo was forced to issue
an apology. In December 2013, Diageo brand "Captain Morgan
Spiced Rum" began advertising on the Rush Limbaugh Show, provoking a backlash against
the brand. References
External links
Official website thebar.com UK
thebar.com DE DRINKIQ.com, Diageo's alcohol education site
Alexander & James, Diageo's luxury alcohol retail website
Media related to Diageo at Wikimedia Commons