Diageo

Diageo plc

Company type	Public (LSE: DGE NYSE: DEO)
Industry	Beverages
Founded	1997
Headquarters	London
Key people	Chairman Lord Blyth of Rowington CEO Paul Walsh
Products	Alcoholic beverages: Beer, Wine, Whiskey
Revenue	£7,260 million (2006)
Operating income	£2,044 million (2006)
Net income	£1,965 million (2006)
Number of employees	22,333
Website	www.diageo.com

Diageo plc (LSE: DGE, NYSE: DEO) is the largest multinational beer, wine and spirits company in the world. The company was formed in 1997 from the merger of Guinness plc and Grand Metropolitan plc and is listed on the London, New York and Irish stock exchanges. The word Diageo was made up from the Latin dia (Day) and the Greek geo (World) and was meant to symbolise the company producing products that are consumed every day throughout the world.

The product portfolios of Guinness and GrandMet were largely complementary, with little overlap.

Brands

Diageo is the holding company for some of the leading international alcoholic beverage brands including, to give a few of the best known brands:

• Beer: Guinness, Smithwicks, Red Stripe, Harp Lager, Kilkenny
• Scotch whisky: Johnnie Walker, J&B, Bells
• Vodka: Smirnoff, Cîroc, Popov
• Gin: Gordon's, Tanqueray
• Rum: Captain Morgan, Bundaberg
• Bourbon: Bulleit
• Canadian whisky: Crown Royal, VO, Yukon Jack
• Irish whiskey: Bushmills
• American whiskey: George Dickel
• Tequila: Don Julio
• Mixed drinks: Baileys, Archers, Pimm's
• Wines: Sterling Vineyards, Beaulieu Vineyard, Blossom Hill

Diageo operates the Scotch whisky distilleries of Blair Athol, Caol Ila, Cardhu, Knockando, Glen Elgin, Clynelish, Cragganmore, Dalwhinnie, Glenkinchie, Glen Ord, Lagavulin, Oban, Royal Lochnagar and Talisker, which are sold not only under their own name but used to make their blended scotch whiskies. Diageo also distributes Jose Cuervo tequila products.

In 2002, Diageo sold the Burger King fast food restaurant chain to a consortium led by the US firm Texas Pacific for $1.5 billion. Diageo also owned Pillsbury until 2000 when it was sold to General Mills.

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.

As of 2006, the brand of Cardhu has quietly changed back to being a single malt again[1].

Corporate governance

Current members of the board of directors of Diageo are: James Blyth, Clive Hollick, Franz Humer, Maria Lilja, Nick Rose, William Shanahan, Todd Stitzer, Jon Symonds, Paul Walker, and Paul Walsh.

External Links

• CocktailTeam.net
• www.diageo.com Official website
• www.diageobrands.com A Diageo website detailing their brands.