Diageo
From Wikipedia, the free encyclopedia
 |
|
| Type | Public (LSE: DGE NYSE: DEO) |
|---|---|
| Founded | 1997 |
| Headquarters | London, England, UK |
| Key people | Franz Humer, chairman Paul Walsh, CEO |
| Industry | Beverages |
| Products | Alcoholic beverages: Beer, wine, spirits |
| Revenue | £10,643 million (2008) |
| Operating income | £2,226 million (2008) |
| Net income | £1,597 million (2008) |
| Employees | 22,000 (2008) |
| Website | www.diageo.com |
Diageo plc (LSE: DGE, NYSE: DEO) is the largest multinational beer, wine and spirits company in the world.[1] The company is listed on the London Stock Exchange and has American Depositary Receipts listed on the New York Stock Exchange. The word Diageo was formed from the Latin dia (day) and the Greek geo (World), symbolising the use of the company's brands every day, everywhere.[2] It is a constituent of the FTSE 100 Index.
Contents |
[edit] History
Diageo was formed in 1997 from the merger of Guinness plc and Grand Metropolitan plc.[3] The creation was driven by the two executives Anthony Greener and Philip Yea at Guinness plus George Bull and John McGrath of Grand Metropolitan. The product portfolios of Guinness and Grand Met were largely complementary, with little overlap.[citation needed]
In 2002, Diageo sold the Burger King fast food restaurant chain to a consortium led by the U.S. firm Texas Pacific for $1.5 billion.[4] Diageo also owned Pillsbury until 2000 when it was sold to General Mills.[5]
[edit] Operations
Diageo is the holding company for some of the most recognizable alcohol brands, including:[6]
- Beer: Guinness, Smithwick's, Red Stripe, Harp Lager, Kilkenny, Kaliber (non alcoholic)
- Scotch whisky: Johnnie Walker, Justerini & Brooks (J&B), Bell's, Black & White, Vat 69, Oban, Talisker, Lagavulin, Glen Ord, Glenkinchie, Dalwhinnie, Cragganmore
- Baijiu: Shui Jing Fang
- Vodka: Smirnoff (Smirnov in Russia), Cîroc, Silent Sam, Popov, Ketel One
- Gin: Gordon's, Tanqueray, Gilbey's, Booth's
- Rum: Captain Morgan, Bundaberg, Pampero, Myers'
- Bourbon: Bulleit
- Canadian whisky: Crown Royal, Seagram's
- Irish whiskey: Bushmills
- Tennessee whiskey: George Dickel
- Tequila: Don Julio, José Cuervo
- Schnapps: Black Haus, Goldschläger, Rumple Minze
- Mixed drinks: Archers, Pimm's, TGI Friday's
- Liqueur: Baileys, Sheridans, Yukon Jack, Godiva's
- Wines: Sterling Vineyards, Piat d'Or, Barton & Guestier, Beaulieu Vineyard, Blossom Hill, Canoe Ridge Vineyard, Acacia, Chalone, Provenance, and Rosenblum.
Diageo is the world's biggest whisky producer with 28 malt distilleries and two grain distilleries.The company operates the Scotch whisky distilleries [7] of Auchroisk, Benrinnes, Blair Athol (situated at Pitlochry), Caol Ila, Cardhu, Knockando, Glen Elgin, Clynelish, Cragganmore, Dalwhinnie, Glenkinchie, Glen Ord, Lagavulin, 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. The company have opened a new malt distillery adjacent to their maltings at Roseisle (1st new make spirit produced Spring 2009). This will be one of the largest malt distilleries in Scotland.The new building contains 14 traditional copper whisky stills. An expansion programme is also underway at its Cameronbridge grain distillery in Fife that will make it the largest grain distillery in Scotland.
Diageo also distributes Unicum, its lighter-bodied variant Zwack and Jose Cuervo tequila products in North America (with the exception of Cuervo 1800). However, Cuervo operates as a separate company in Mexico and is not owned by Diageo. Similarly Grand Marnier is distributed by Diageo in many markets, including exclusively in Canada, and a deal was reached in 2009 to significantly expand this partnership in Europe.
[edit] Cardhu controversy
In December 2003, Diageo provoked controversy over its decision to change its Cardhu brand Scotch whisky from a single malt to a vatted malt (also known as a pure 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.[8]
In 2006, the Cardhu brand quietly changed back to being a single malt.[9]
[edit] Johnnie Walker uproar
In July 2009, Diageo announced that, after nearly 200 years of association with the town of Kilmarnock, 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 local MPs and a petition was drawn up against the Diageo plans .[10]
[edit] Tax controversy
In February 2009 it was reported in the Guardian that the company had restructured itself so as to avoid paying tax in the U.K., despite much of its profits being generated in the U.K.[11]
[edit] References
- ^ Bowers, Simon (29 January 2008). "Diageo wine deal". The Guardian. http://www.guardian.co.uk/business/2008/jan/29/diageobusiness.fooddrinks. Retrieved on 2008-01-31.
- ^ "Diageo at a glance". About Diageo. Diageo plc. http://www.diageo.com/en-row/AboutDiageo/Diageoataglance/. Retrieved on 2008-04-10.
- ^ Spirits soar at Diageo
- ^ Diageo sells Burger King
- ^ Diageo sells Pillsbury to General Mills
- ^ Diageo: our brands
- ^ List of distilleries in Scotland
- ^ "Whiskey packaging whips up controversy". Beverage Daily.
- ^ Scottish Whisky: Cardhu
- ^ "Kilmarnock Town fights to protect their heritage"
- ^ Going Dutch
[edit] External links
- Official website
- DRINKIQ.com, Diageo's alcohol education site
