Difference between revisions of "Diageo"

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'Great people, great brands, holistic performance. That is Diageo.'
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{{Template:alcohol badge}}
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:"Great people, great brands, holistic performance. That is Diageo."
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:"Every day, everywhere, people enjoy our brands. Together we celebrate life responsibly."<ref> Diageo website [http://www.diageo.com/pageengine.asp?site_id=0&section_id=0&page_id=1015 Home Page] - viewed 24.01.05</ref>
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'''Diageo''' is a British multinational alcohol company and one of the biggest alcohol companies in the world. It sells alcohol in 180 countries, with a substantial presence in 30 countries.<ref>Julia Finch, The Guardian 17.11.03, [http://society.guardian.co.uk/givinglist/story/0,10994,1087122,00.html 'Brewing a set of Standards,'] - viewed 25.01.05</ref>
  
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Name: Diageo plc www.diageo.com
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==Clean, friendly and ethical image==
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Industry Areas: Alcoholic drinks
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The company was created in 1997 by the merger of [[Guinness]] PLC with [[Grand Metropolitan]] PLC (GrandMet). At that stage it was a large multinational with interests in food as well as drink.  Today, the company has shed most of its food interests to concentrate on alcohol, acquiring new spirit brands. It projects an image of itself as a clean, friendly and ethically-oriented company with a commitment to "corporate social responsibility" (CSR)<ref> Diageo website, [http://www.diageo.com About us] accessed 1 June 2008 </ref>. This includes both a professed concern with the harm alcohol can cause, and statements about what a great service the company is providing by producing such well-loved brands. As a result, the company manages to gloss over a number of issues for which it has received criticism, such as:
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1.1 Summary
 
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'Every day, everywhere, people enjoy our brands. Together we celebrate life responsibly.'2
 
  
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Diageo is a British multinational alcohol company, and one of the biggest alcohol companies in the world. It projects an image of itself as a clean, friendly and ethically-oriented company with a commitment to 'corporate social responsibility' (CSR).3 This includes both a professed concern with the harm alcohol can cause, and statements about what a great service the company is providing by producing such well-loved brands As a result, the company manages to gloss over a number of issues for which it has received criticism, such as:
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*undermining small-scale and independent alcohol production, both in the UK and in East Africa (see [[Diageo: Corporate Crimes]])
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*assisting a shift towards casualisation of employment terms (see: [[Diageo: Corporate Crimes]])
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*specific instances of environmental damage and irresponsible marketing (see [[Diageo: Corporate Crimes]])
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*Diageo's 'ethical' image has also allowed it a significant and increasing role in formulating government policy, both individually and through various alcohol industry bodies. Diageo's networks of links with policy-makers should be especially highlighted (see [[Diageo: Influence]])
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*Diageo promotes the idea that the major problem of alcohol harm is anti-social behaviour caused by binge-drinking. Many health experts dispute the industry assumption about alcohol harm, suggesting that liver failure caused by sustained drinking, account for the majority of people treated in Accident and Emergency for problems caused by alcohol (see [[Diageo: Influence]]) <ref> Jo Revill,  The Observer, 23.01.05; [http://observer.guardian.co.uk/politics/story/0,,1396586,00.html  'Mid-life drinkers who booze at home risk disease,'] accessed 07.02.05 </ref>. 
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[[Image:Diageo Headquarters.jpg|right|thumb|Diageo HQ, First Central Business Park, Park Royal, London]]
  
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# undermining small-scale and independent alcohol production, both in the UK and in East Africa (see Corporate Crimes section of this profile);
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==Market share and ownership==
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In September 2004, Diageo was the 11th largest publicly quoted company in the UK in terms of market capitalisation <ref> Diageo Website , [http://www.diageo.com/download%5C3000---R531.pdf Annual Report 2004 (p.12)] accessed 24.01.05 </ref>.  Diageo Plc is incorporated as a public limited company in England and Wales. It is listed on the London Stock Exchange, as DGE, and on the New York Stock Exchange, as DEO.  The company's turnover was £8.89 bn in 2004, with a total profit of £1.87 bn after exceptional items and tax <ref> Diageo Website, [http://www.diageo.com/download%5C3000---R531.pdf - Annual Report 2004 (p.26)] - viewed 24.01.05 </ref>.  It is the largest spirits company in the world, with many of the leading spirits brands (see section on Products and Projects in this profile). As well as spirits, it is the manufacturer of Guinness, and has a 79% share of the stout sector in Europe.
  
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# assisting a shift towards casualisation of employment terms (see Corporate Crimes section of this profile);
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*'''Number of employees'''
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Various figures are available as to the number of Diageo's employees. These all suggest a reduction in number in the early 2000s, in part due to the company selling many of its non-alcohol divisions. YahooBiz suggests 38,955 employees in June 2003 (down from 62,124 in June 2002) <ref> Yahoo Business Website [http://uk.biz.yhoo.com/p/d/dge.1.html Diageo] - viewed 02.01.05 </ref>.  Diageo's own website suggests 32,392 for 2004 <ref> Yahoo Finance [http://finance.yahoo.com/q/pr?s=DEO Diageo] - viewed 02.01.05 </ref> while elsewhere its 'Corporate Responsibility Report' suggests 23,720 in 2004 (as opposed to 24,561 in 2003) <ref> Diageo website [http://www.diageo.com/download%5C3000---R532.pdf Diageo Pdf (p.16)] - viewed 02.01.2005 </ref>.  Whichever figure is accurate, they are employed in numerous small operations across the 180 countries Diageo works in. 
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*'''Shareholder'''
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Capital Group Companies, Inc. are the only major shareholders, with 123 million ordinary shares (4.01% of the issued ordinary share capital) and no different voting rights. No other major shareholders are listed in Diageo’s Annual Report.  According to its Annual Review, Diageo has a total shareholder return (the change in capital value over a period of time of a listed company) of 39%, which makes it rank 6th amongst its competitors <ref> Diageo Annual Review 2004, [http://www.diageo.com/download%5C3000---R530.pdf - Annual Report 2004 p.5] - viewed 24.01.05 </ref>
  
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# Specific instances of environmental damage and irresponsible marketing (see Corporate Crimes section of this profile);
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*'''Annual turnover'''
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Turnover in 2004 was £8.89 bn, with total profit £1.87 bn after exceptional items and tax.  Operating profit before exceptional items and was £1.91 bn in 2004, down from £1.96 bn in 2003 <ref> Diageo Annual Report 2004, [http://www.diageo.com/download%5C3000---R531.pdf - Annual Report 2004p.26] - viewed 24.01.05 </ref>.
  
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# Diageo's 'ethical' image has also allowed it a significant and increasing role in formulating government policy, both individually and through various alcohol industry bodies. Diageo's networks of links with policy-makers should be especially highlighted (see Influence section of this profile).
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*'''Subsidiaries'''
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Diageo has 296 listed subsidiaries, many of which have 'Diageo' in their name, including:
  
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# Diageo promotes the idea that the major problem of alcohol harm is anti-social behaviour caused by binge-drinking. Many health experts dispute the industry assumption about alcohol harm, suggesting that liver failure caused by sustained drinking, account for the majority of people treated in Accident and Emergency for problems caused by alcohol (see Influence section of this profile).4
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*Gleneagles Hotels Ltd (Venue for 2005 G8 summit)<ref> FAME Database [http://fame.bvdep.com/cgi/template.dll?context=33Y78C&tpl=reportframe&bitnr=14627&pushlink=0  Diageo]- viewed 01.12.05, subscription required, accessed 01.12.05 </ref>
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*Haagendazs is a large American company producing ice cream. Some of their products have been investigated for GM products (see 'Corporate Crimes' section)<ref> FoodComp  [http://www.btinternet.com/-clairejr/foodcomp/foodcomp.html Home] - viewed 10.10.04 </ref>.
  
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Diageo is to play a prominent role in the 2005 G8 Gleneagles Summit. Not only does it own the Gleneagles Hotel where the Summit will take place, it has made its presence felt in determining the policies of the G8. As one of Africa's largest corporations, the company was part of the Business Contact Group of the Commission for Africa, which has essentially recommended a further opening up of markets in Africa to foreign investment (See Corporate Watch report, 'Bringing the G8 Home: Corporate Involvement in and around the G8 in Scotland 2005).
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==History==
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Diageo PLC was formed with the merger of Guinness PLC, its primary parent company, with Grand Metropolitan PLC (GrandMet), a hotel chain with brewing interests, in 1997. Guinness had already absorbed a number of other companies, including Distillers PLC <ref>Diageo Website [http://www.diageo.com/en-row/AboutDiageo/OurHistory/ Our History] accessed 1st June 2008 </ref>.  Diageo's parent companies were involved in a number of controversial and high-profile scandals in the second half of the twentieth century, tarnishing their reputations and perhaps providing an impetus to the re-naming and re-imaging the company underwent when the merger took place. In 1958 [[Distillers]] PLC marketed and distributed the drug thalidomide as a treatment for morning sickness, which was found to produce severe deformities in babies <ref> Thalidomide UK Website [http://www.thalidomideuk.com/ Diageo] - viewed 04.02.05 </ref>.  In the 1986 '[[Guinness]] Affair,' four people including Guinness' former Chief Executive [[Ernest Saunders]] were convicted for illegally boosting share prices in a takeover bid <ref> Mike Verdin, BBC News Online 21.12.01 [http://news.bbc.co.uk/2/hi/business/1723136.stm ‘Guinness Four fail in fight for acquittal,’] - viewed 26.11.04 </ref>.  (See [[Diageo: Corporate Crimes]] section of this profile for a more detailed account of these incidents)
  
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Perhaps as a result of these incidents, the merger of 1997 brought about a re-branding and re-imaging of the company. The neutral-sounding and fairly meaningless name ‘Diageo PLC’ was chosen. Diageo explains this name as follows: 'the name "Diageo" combines the Latin word for "day" and the Greek word for "earth". Together, the two words mean celebrating life every day, everywhere.’ <ref> Diageo Careers, [http://www.diageo-careers.com/WhoWeAre-DidYouKnow.asp+distiller+diageo&hl=en Who We Are] - viewed 26.11.04 </ref>.  This is captured in another of its catchphrases, 'every day, everywhere, people are enjoying our brands.' <ref> Paul Walsh, Diageo CEO, The London Business School , 28.06.04 [http://www.diageo.com/download%5C3000---R495.pdf Summit on Global Leadership]  - viewed 18.01.05 </ref>. 
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1.2 Market share, importance
 
  
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Diageo PLC is a British multinational alcohol company, selling alcohol in 180 countries, with a substantial presence in 30 countries.5 The company was created in 1997 by the merger of Guinness PLC with Grand Metropolitan PLC (GrandMet). At that stage it was a large multinational with interests in food as well as drink. Today, the company has shed most of its food interests to concentrate on alcohol, acquiring new spirit brands.
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Again in 2000 restructuring was evident. [[Paul Walsh]] become Chief Executive Officer as part of a strategic re-alignment of its business, also [[James Blyth]] aka [[Lord Blyth of Rowington]] succeeded Sir [[Anthony Greener]] as Chairman.<ref> Diageo Website [http://www.diageo.com/en-row/AboutDiageo/OurHistory/ Our History] accessed 1st June 2008 </ref>.
  
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In September 2004, Diageo was the 11th largest publicly quoted company in the UK in terms of market capitalisation.6 The company's turnover was £8.89 bn in 2004, with a total profit of £1.87 bn after exceptional items and tax.7 It is the largest spirits company in the world, with many of the leading spirits brands (see section on Products and Projects in this profile). As well as spirits, it is the manufacturer of Guinness, and has a 79% share of the stout sector in Europe.
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==Current strategy==
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Their current strategy is to grow strong brands, trademark brands to ensure maximum returns and dominate market share, and continuing to invest in emerging and developing markets while maing selective take overs <ref> Diageo Website [http://www.diageo.com/en-row/AboutDiageo/Ourstrategy/ Our Strategy] accessed 1st June 2008 </ref>. The company indeed has had much to celebrate in recent years:
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*It has become a world leader in spirits production;
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*It has transformed its image through a huge PR campaign since 1997 and today is viewed as a clean and ethical company, and an enthusiastic proponent of corporate social responsibility (CSR) (see [[Diageo: Influence]] section for more on this);
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*Quite possibly assisted by this PR programme, Diageo has also been successful in building a good relationship with the British government. An ethos of corporate responsibility and self-regulation, and a professed commitment to fighting the harm caused by alcohol, has allowed them, together with other companies and industry-wide organisations, to evade regulation and to be involved in government policy, which has in turn been shaped around the alcohol industry's perception of alcohol and alcohol harm (alcohol as something that helps 'celebrating life every day, everywhere.’) <ref> Diageo Careers [http://www.diageo-careers.com/WhoWeAre-DidYouKnow.asp+distiller+diageo&hl=en Who We Are] - viewed 26.11.04 </ref>
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*In January 2009 [[Diageo]] enlisted the support of [[Lewis Hamilton]] the English [[Formula One]] racing star to help its campaign against the [[Scottish Government]]'s efforts to limit alcohol relatd harm. [[Rachael Robertson]], head of government affairs at [[Diageo]], said ""Lewis Hamilton is a big role model. We can use the skills we employ to sell our product to push the message of responsible drinking, to change attitudes towards alcohol and its misuse." <ref> Richard Bath and Kate Foster, Scotland on Sunday 25th January [http://scotlandonsunday.scotsman.com/scotland/Lewis-Hamilton-joins-drive-against.4911074.jp Lewis Hamilton joins drive against booze restrictions] accessed 1st march 2009 </ref>
  
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Number of employees
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==Connections: industry, government and beyond==
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Various figures are available as to the number of Diageo's employees. These all suggest a reduction in number in the early 2000s, in part due to the company selling many of its non-alcohol divisions. YahooBiz suggests 38,955 employees in June 2003 (down from 62,124 in June 2002).8 Diageo's own website suggests 32,392 for 2004,9 while elsewhere its 'Corporate Responsibility Report' suggests 23,720 in 2004 (as opposed to 24,561 in 2003).10 Whichever figure is accurate, they are employed in numerous small operations across the 180 countries Diageo works in.
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Diageo's close ties with government, and strong interests in lobbying it, help make sense of its involvement in the G8 summit of July 2005, which took place at Gleneagles, a hotel in Perthshire in Scotland owned by Diageo.  Diageo played a prominent role in the 2005 G8 Gleneagles Summit. Not only does it own the Gleneagles Hotel where the Summit took place, it has made its presence felt in determining the policies of the G8. As one of Africa's largest corporations, the company was part of the Business Contact Group of the Commission for Africa, which has essentially recommended a further opening up of markets in Africa to foreign investment (See Corporate Watch report, 'Bringing the G8 Home: Corporate Involvement in and around the G8 in Scotland 2005). Diageo representatives participate in a wide range of governmental activities including membership on a number of groups and committees including:
  
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'''Policy Groups & Relationships with Policy Makers'''
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1.3 History
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*[[Partnership Agreement: Scottish Executive and the Alcohol Industry]]
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*[[European Alcohol and Health Forum]]
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*[[All-Party Parliamentary Group on Nigeria]], provide funding <ref> House of Commons Register of All Party Groups [http://www.publications.parliament.uk/pa/cm/cmallparty/register/memi90.htm Country Groups: All-Party Parliamentary Group on Nigeria] accessed 16th June 2008 </ref>
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*[[American Legislative Exchange Council]], [[Kenneth F. Lane]] of [[Diageo]] USA is a member of the ALEC Private Enterprise Board. <ref> ALEC Website [http://www.alec.org/AM/Template.cfm?Section=Private_Enterprise_Board&Template=/CM/HTMLDisplay.cfm&ContentID=6991 ALEC Board Members] Accessed 25th August 2008 </ref>. 
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*The [[Cross-Party Group in the Scottish Parliament on Scotch Whisky]]<ref> Scottish Parliament, [http://www.scottish.parliament.uk/msp/crosspartygroups/documents/ScotchWhisky.pdf Cross-Party Groups in the Scottish Parliament- Registration Form], no date given, accessed 5th October 2011 </ref>
  
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Diageo PLC was formed with the merger of Guinness PLC, its primary parent company, with Grand Metropolitan PLC (GrandMet), a hotel chain with brewing interests, in 1997. Guinness had already absorbed a number of other companies, including Distillers PLC.
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*HM Treasury [[Business Forum on Tax and Competitiveness]]
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*Diageo was represented in the Coalition government's [[Controlled Foreign Companies (CFC) Working Groups]] in 2011
  
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The history of the Guinness family company is celebrated as an important part in the history of Dublin. Arthur Guinness began brewing beer in 1759. He and his family had a reputation for philanthropic activities, which included providing parks and housing for Dublin's poor in the 19th century, when governments relied on private beneficence to enable public services to exist. Diageo’s website celebrates this element of the history of Guinness and links it with its own current policy of social responsibility.11
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'''Industry Groups'''
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*The [[Portman Group]]
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*[[The Drinkaware Trust]]
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*[[Scotch Whisky Association]]
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*[[European Spirits Organisation]]
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*[[European Sponsorship Association]]
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*[[European Spirits Companies Liaison Group]]
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*[[Institute de Recherches Scientifiques sur les Boissons]]
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*[[Scottish Beer and Pub Association]]
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*[[Wine & Spirit Trade Association]]
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*[[Association of Licensed Multiple Retailers]]
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*[[European Sponsorship Association]]
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*[[All-Party Parliamentary Beer Group]]
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*[[Whitehall and Industry Group]]
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*[[Amsterdam Group]] (now defunct)
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*[[American Legislative Exchange Council]] (USA)
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*[[Congressional Wine Caucus]] (USA)
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*The [[Mature Enjoyment of Alcohol Society]] (Ireland)
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*[[Global Alcohol Producers Group]]
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*[[International Business Leaders Forum]]
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*[[Scottish Business in the Community]]
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*[[European Transport Safety Council]]
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*[[ICAP]]
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*[[European Forum for Responsible Drinking]]
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*[[Social Issues Research Centre]] [[Diageo]] provides funding.
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*[[Century Council]]
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*[[Fells Associates]]
  
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Diageo's parent companies were involved in a number of controversial and high-profile scandals in the second half of the twentieth century, tarnishing their reputations and perhaps providing an impetus to the re-naming and re-imaging the company underwent when the merger took place. In 1958 Distillers PLC marketed and distributed the drug thalidomide as a treatment for morning sickness, which was found to produce severe deformities in babies.12 In the 1986 'Guinness Affair,' four people including Guinness' former Chief Executive Ernest Saunders were convicted for illegally boosting share prices in a takeover bid (See the Corporate Crimes section of this profile for a more detailed account of these incidents).13
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Other SAOs which Diageo is a member of around the world include:
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*[[Goda]] (Denmark),
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*[[Enterprise et Prevention]] (France),
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*[[FISAC]] (Mexico),
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*[[STIVA]] (Netherlands),
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*[[ARA]] (South Africa),
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*[[FAyS]] – (Spain),
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*[[TBAF]] - (Taiwan),
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*[[SASPI]] - (India),
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*[[REACT]] - (Thailand), which was founded by Diageo.
  
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These SAOs all share with Diageo a platform that the harm alcohol causes coexists with its benefits, and that in moderation, alcohol can be good for you. This approach is shaped by the interests of the industry, despite claims to independence.
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1.4 Current Strategy
 
  
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Perhaps as a result of these incidents, the merger of 1997 brought about a re-branding and re-imaging of the company. The neutral-sounding and fairly meaningless name ‘Diageo PLC’ was chosen. Diageo explains this name as follows: 'the name "Diageo" combines the Latin word for "day" and the Greek word for "earth". Together, the two words mean celebrating life every day, everywhere.’14 This is captured in another of its catchphrases, 'every day, everywhere, people are enjoying our brands.'15
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==Revolving door==
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*[[Lord Davies]] of Abersoch, former Minister for Trade Promotion and Investment [[Department for Business, Innovation and Skills]] until May 2010 took up the role of non-executive director of Diageo in July 2010. The UK government's [[Advisory Committee on Business Appointments]] saw "no reason why he should not take up the appointment subject to a waiting period of 3 months from his last day in office, on the basis that he would not draw on any privileged information which was available to him as a Minister, and the condition that, for 2 years after leaving office he should not become personally involved in lobbying UK Government Ministers or Crown servants, including Special Advisers, on behalf of the firm." <ref> Advisory Committee on Business Appointments, Twelfth Annual Report, 2010-2011 </ref>
  
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The company indeed has had much to celebrate in recent years:
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*[[Vickie Sheriff]], former director of communications at the UK [[Department for Transport]] joined Diageo in 2014
  
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        * It has become a world leader in spirits production;
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==External lobbying help==
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        * It has transformed its image through a huge PR campaign since 1997 and today is viewed as a clean and ethical company, and an enthusiastic proponent of corporate social responsibility (CSR) (see Influence section for more on this);
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In July 2010 ''PRWeek'' reported that Diageo GB 'signed over its public affairs and responsible drinking campaigns to [[Edelman]] as it prepares to go to battle with the Government over changes to alcohol tax'.  
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        * Quite possibly assisted by this PR programme, Diageo has also been successful in building a good relationship with the British government. An ethos of corporate responsibility and self-regulation, and a professed commitment to fighting the harm caused by alcohol, has allowed them, together with other companies and industry-wide organisations, to evade regulation and to be involved in government policy, which has in turn been shaped around the alcohol industry's perception of alcohol and alcohol harm (alcohol as something that helps 'celebrating life every day, everywhere.’16)
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:This was against the backdrop of [[David Cameron]]'s planned reform of the Licensing Act along with a ban on below-cost selling and a policy decision on alcohol labelling.<ref> [http://www.appc.org.uk/members/register/register-profile/?company=Edelman Register 1st September 2014 - 30th November 2014] ''APPC'', accessed 29 January 2015 </ref>
  
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Diageo's close ties with government, and strong interests in lobbying it, help make sense of its involvement in the G8 summit of July 2005, which will take place at Gleneagles, a hotel in Perthshire in Scotland owned by Diageo.
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Edelman continues to hold the account as of 2015.
  
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2. Products and Projects
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===Former lobbying firms===
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*[[InHouse PR]], until August 2014<ref> [http://www.appc.org.uk/members/register/register-profile/?company=iNHouse%20Communications Register 1st June 2014 - 31st August 2014] ''APPC'', accessed 29 January 2015 </ref>
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Diageo hired lobbying firm [[Hanover Communications]] in September 2007 as its retained UK public affairs agency, switching from [[Reputation Inc]]. The move came as the Government stepped up its efforts to curb binge-drinking. Diageo was thought to be paying Hanover at least £100,000 a year. Hanover MD [[Charles Lewington]] said at the time: ‘We will be helping Diageo to raise awareness of its ­responsible-drinking ­activities in government. We will also be ­advising on ­ongoing ­discussions with ­officials about the best way of ­promoting responsible ­consumption.’<ref>[http://www.brandrepublic.com/News/739233/Diageo-hires-Hanover-alcohol-concerns-grow/ Diageo hires Hanover as alcohol concerns grow], PR Week, 20 Sept 2007</ref>
  
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Diageo manages 17 of the world’s top 100 premium spirits brands. Recently it has dropped non-alcohol products, selling Pillsbury, a large US firm producing baked foods and snacks, to General Mills in 2001, and selling Burger King, the fast food giant, in 2002, which has allowed the company to escape the current outcry against fast food. Diageo has bought much of the spirits division of Seagram, previously a major spirits company, and other alcohol brands, entrenching its position as a leader in spirits. This reflects a shift to consolidation evident in the spirits sector in general.1
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:The firm - one of the biggest funders of responsible drinking campaigns in the UK - and high-profile CEO [[Paul Walsh]] have in the past come out forcefully against minimum alcohol pricing and steep alcohol tax increases, as well as questioning the link between excessive drinking and advertising.<ref>Matt Cartmell, [http://www.prweek.com/uk/news/1017459/drinks-giant-diageo-hands-responsible-drinking-brief-edelman/ Drinks giant Diageo hands 'responsible drinking' brief to Edelman], PR Week UK, 22 July 2010, accessed 14 October 2011 </ref>
  
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Diageo's key brands include:
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*[[Portland PR]] now act as '''Diageo''''s PR representation <ref>[http://www.appc.org.uk/members/register/register-profile/?company=Portland Portland PR clients, Sep-Nov15], ''APPC.org'', accessed 3 February 2016</ref>
  
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Whisky: Bell’s (UK market leader)
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==EU Lobbying==
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Johnnie Walker (global market leader in Scotch whiskey), Johnnie Walker Pure Malt
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Diageo have 5 lobbyists with European Parliament passes, allowing the bearer virtually unlimited access to the Parliament's buildings.<ref> [http://lobbyfacts.eu/reports/staffing/companies?page=2 Companies declaring the most lobbyists] ''Lobby Facts'', 26 January 2015, accessed 3 February 2015 </ref>
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J&B (European market leader in Scotch whiskey), J&B Rare
 
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Black and White, Haig, Spey Royal, White Horse, VAT 69, Buchanan’s, Dimple, Old Parr, Windsor Premier, Seagram’s 7 Crown, Seagram’s VO, Crown Royal Canadian Whiskey;
 
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Single Malt Scoth Whiskys: Cragganmore, Glenkinchie, Oban, Distillery Malts, Hidden Malts, Cardhu.
 
  
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Vodka: Smirnoff (40% of global market share), Ciroc, Tanqueray Sterling Vodka.
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==Products and projects==
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Diageo manages 17 of the world’s top 100 premium spirits brands. Recently it has dropped non-alcohol products, selling [[Pillsbury]], a large US firm producing baked foods and snacks, to [[General Mills]] in 2001, and selling [[Burger King]], the fast food giant, in 2002, which has allowed the company to escape the current outcry against fast food. Diageo has bought much of the spirits division of [[Seagram]], previously a major spirits company, and other alcohol brands, entrenching its position as a leader in spirits. This reflects a shift to consolidation evident in the spirits sector in general <ref> Keynote reports p.5  [http://www.diageo.com/download%5C3000---R531.pdf - Diageo annual review 2004] - viewed 20.01.05 </ref>
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==Board of Directors ==
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*[[James Blyth]] Lord Blyth of Rowington
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*[[Laurence Danon]]
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*[[Clive Hollick]] Lord Hollick of Notting Hill
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*Dr. [[Franz B. Humer]] of [[Roche]] replaced Lord Blyth as Chairman in 2008
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*[[Maria Lilja]]
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*[[Nick Rose]]
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*[[Philip Scott]]
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*[[William Shanahan]]
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*[[Todd Stitzer]]
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*[[Paul Walker]]
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*[[Paul Walsh]]
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<ref> Diageo Website [http://www.diageo.com/en-row/AboutDiageo/OurManagement/BoardofDirectors/Lord_Blyth_of_Rowington.htm Board of Directors] accessed 1st June 2008 </ref>
  
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Gin: Gordon’s (around 50% of UK market share), Tanqueray (US market leader in imported gin), Gilbey’s Gin.
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'''Executive Committee'''
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*[[Paul Walsh]]
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*[[Stuart Fletcher]] - President of Diageo International;
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*[[Jim Grover]] - Global Business Support Director;
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*[[Rob Malcolm]] - President of Global Marketing Sales and Innovation (who has previously held positions at [[Proctor and Gamble]]);
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*[[Ivan Menezes]] - President of Diageo North America;
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*[[Andrew Morgan]] - President of Diageo Europe;
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*[[Tim Proctor]] - General Counsel (who has previously held positions with [[GlaxoWellcome]]);
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*[[Gareth Williams]] - Human Resources Director.
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*[[Nick Rose]]
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*[[John Pollaers]]
  
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Rum: Captain Morgan (UK market leader in dark rum), Cacique, Brandenburg, Pampero, Myer’s Rum.
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'''Lobbyists'''
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*[[Tim Rycroft]] Was Government Affairs Director UK, currently Corporate Relations Director Global Travel & Middle East
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*[[Ian Wright]] Corporate Relations Director
  
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Brandy: Bertrams VO Brandy.
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'''Others'''
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*[[Norman Macfarlane]] Lord Macfarlane of Bearsden honorary life president
  
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Liquers: Bailey’s (UK market leader in liquer), Romana Sambuca, Safari.
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*[[Benet Slay]]
  
−
Schnapps: Archers, Rumple Minze, Goldschlager, Black Haus.
+
'''Former Executive Staff'''
 +
*[[Rodney Chase]]
 +
*[[Keith Oates]]
 +
*[[Jonathan Symonds]]
 +
*[[Phil Bentley]] <ref>Centrica [http://www.centrica.co.uk/index.asp?pageid=49 Management] Accessed 26th August 2008</ref>
  
−
Tequila: Jose Cuervo (global market leader in Tequila), Don Julio.
 
−
 
−
Pimms
 
−
 
−
Ready-to-Drinks (alcopops):Smirnoff Ice (UK alcopop market leader, sharing 50% of market together with Bacardi Breezer), Smirnoff Black Ice, Archer’s Aqua, Bailey's Glide, Ruski, UDL
 
−
 
−
Beer: Guinness (global stout market leader), Harp, Kilkenny, Tusker, Smithwicks, Red Stripe
 
−
 
−
Wine: Sterling Vineyards, Piat d’Or, Periquita Wines, Justerini & Brooks Wines, Casillero Wines, Blossom Hill Wines, José de Sousa Wines , Baron Philippe Wines, Barton & Guestier Wines, Beaulieu vineyards
 
−
 
−
Champagne: Dom Perignon
 
−
 
−
Aperitif: Picon
 
−
 
−
Diageo also has two joint ventures with Moet-Hennessey, Hennessey Cognac and Moet Chandon.
 
−
 
−
Diageo's major competitors include Allied Domecq, Pernod Ricard, and Bacardi.
 
−
 
−
3. Who, where, how much
 
−
# 3.1 Diageo's sites
 
−
# 3.2Company Structure/ Ownership
 
−
# 3.3 Company Officers
 
−
# 3.4 Subsidiaries
 
−
# 3.5 Auditors
 
−
 
−
Diageo is a UK-based multinational. Its principal brewing locations are in Ireland, the UK, Nigeria, Kenya, Jamaica, Malaysia and Cameroon, though it has bases and markets in 180 countries.
 
−
 
−
3.1 Diageo's sites
 
−
 
−
Diageo's Head Office:
 
−
8 Henrietta Place
 
−
London
 
−
W1G 0NB
 
−
Web: www.diageo.com
 
−
Email: Company secretary; Investor Relations
 
−
 
−
Park Royal Site:
 
−
Cumberland Avenue
 
−
Park Royal, London NW10 7RR
 
−
020 8965 7700
 
−
 
−
A major site for Diageo is its 'prestige office development' in Park Royal, West London, which is the head office for Diageo Great Britain, and until recently the site of brewing of Guinness for the UK, which is currently being moved to Ireland.1
 
−
 
−
Diageo Ireland:
 
−
St James's Gate, Dublin 8, Republic of Ireland
 
−
Tel: 01 643 5438/5683
 
−
Fax: 01 408 4814
 
−
Email: irish.register@diageo.com
 
−
 
−
Diageo Scotland ltd:
 
−
Edinburgh Park
 
−
5 Lochside Way
 
−
Edinburgh
 
−
Lothian EH12 9DT
 
−
0131 519 2000
 
−
 
−
Diageo Great Britain:
 
−
Lakeside Drive
 
−
London NW10 7HQ
 
−
 
−
For a full list of Diageo's sites around the world, see the company's website: www.diageo.com/careers/index.html
 
−
 
−
Back to top
 
−
3.2 Company structure/ownership
 
−
 
−
Diageo Plc is incorporated as a public limited company in England and Wales. It is listed on the London Stock Exchange, as DGE, and on the New York Stock Exchange, as DEO.
 
−
 
−
Share value
 
−
 
−
For information about Diageo’s share value see the company's Annual Review.2
 
−
 
−
According to its Annual Review, Diageo has a total shareholder return (the change in capital value over a period of time of a listed company) of 39%, which makes it rank 6th amongst its competitors.3
 
−
 
−
Shareholders
 
−
 
−
Capital Group Companies, Inc. are the only major shareholders, with 123 million ordinary shares (4.01% of the issued ordinary share capital) and no different voting rights. No other major shareholders are listed in Diageo’s Annual Report.
 
−
 
−
Annual turnover
 
−
 
−
Turnover in 2004 was £8.89 bn, with total profit £1.87 bn after exceptional items and tax.5
 
−
Operating profit before exceptional items and was £1.91 bn in 2004, down from £1.96 bn in 2003. 6
 
−
 
−
Back to top
 
−
3.3 Company officers7
 
−
 
−
# Executive CommitteePaul Walsh
 
−
# Nicholas Rose
 
−
# Stuart Fletcher
 
−
# Jim Grover
 
−
# Rob Malcolm
 
−
# Ivan Menezes
 
−
# Andrew Morgan
 
−
# Tim Proctor
 
−
# Gareth Williams
 
−
 
−
# Board of DirectorsLord Blyth of Rowington
 
−
# Lord Hollick of Notting Hill
 
−
# Rodney Chase
 
−
# Maria Lilja
 
−
# Keith Oates
 
−
# Jonathan Symonds
 
−
# William Shanahan
 
−
# Todd Stitzer
 
−
# Paul Walker
 
−
 
−
Executive Committee
 
−
 
−
Paul Walsh
 
−
Chief Executive Director
 
−
Diageo's CEO, Paul Walsh was listed by the Guardian as ranking 16th in the top twenty earners in Britain in 2003, with a salary of £3,457,909.8 He joined GrandMet in 1982 going on to become CEO of the Pillsbury Company in 1992. He was appointed to the Diageo Board in 1997 and became its CEO in 2000. His other appointments include Director of the Scotch Whisky Association, Non-Executive Director of Federal Express Corporation9, Non-Executive Director of Centrica PLC (amongst whose brands are British Gas and a number of other suppliers of gas, electricity and telecommunications)10, and Governor of Henley Management Centre.11
 
−
Paul Walsh on business in the UK: 'The UK's enterprise culture needs strengthening. We need those who seek to legislate, regulate, or otherwise influence opinion to see business as an inherently good thing, creating prosperity and the foundation on which the institutions of civil society can flourish. We need to change the culture of this country so that enterprise is celebrated.'12
 
−
 
−
Nicholas Rose
 
−
Chief Financial Officer
 
−
Nick Rose was Finance Director of UDV from 1997 and was appointed to the Diageo board in 1999. His other appointments include Non-Executive Director of Scottish Power13 and Non-Executive Director of Moet Hennessey SNC in France, which has joint ventures with Diageo.14
 
−
 
−
Other members of the Executive Committee are:
 
−
Stuart Fletcher - President of Diageo International;
 
−
Jim Grover - Global Business Support Director;
 
−
Rob Malcolm - President of Global Marketing Sales and Innovation (who has previously held positions at Proctor and Gamble);
 
−
Ivan Menezes - President of Diageo North America;
 
−
Andrew Morgan - President of Diageo Europe;
 
−
Tim Proctor - General Counsel (who has previously held positions with GlaxoWellcome);
 
−
Gareth Williams - Human Resources Director.
 
−
 
−
Board of Directors
 
−
 
−
Lord Blyth of Rowington
 
−
Chair
 
−
James Blyth was appointed as a Non-Executive Director in 1999 and chair in 2000. Lord Blyth's other interests include arms sales: he ran the Defence Export Services Organisation (DESO), the UK Ministry of Defence’s arms export promotion department, from 1981 to 1985, to which he was seconded from Lucas Aerospace ltd, an arms manufacturer.15 DESO's aims are to encourage arms sales by UK companies. It is a forum for arms industry executives to enter the heart of government, through secondments, in order to help the industry sell arms with direct government support.16 In addition Lord Blyth was Non-Executive Director of British Aerospace from 1990 to 1994.17 He has also been Chief Executive of the Plessey Company, and Chair of Boots Company PLC, which he left in 2000 having been Chief Executive since 1987. He is also currently Non-Executive Director of Anixter inc.18 and Vice-Chair of Greenhill inc., a global investment banking firm. Sir Anthony Greener, Chair of Diageo until 2000, announced Lord Blyth's appointment congratulating 'his experience with government,' an 'excellent qualification for the next chair of Diageo,' pointing to the value to the company of a director with experience of working with government,19 given its priorities at that time.
 
−
 
−
Lord Hollick of Notting Hill
 
−
Senior Non-Exeutive Director
 
−
As well as being Senior Non-Executive Director of Diageo Clive Hollick has numerous interests. An active Labour Party member, he was a founding trustee of the Institute for Public Policy Research, a 'centre-left' think-tank that has been very influential on New Labour's policies.20 His work at the IPPR included establishing and being a member of the IPPR's Commission on Public Policy and British Business, which reported in 1997 and 'was subsequently influential in setting Labour's business policy for its first term.'21 The IPPR also organised a forum on responsible drinking in May 2004 which was hosted by Diageo and included speakers from Diageo as well as from government ministries, including Tony Blair.22 Lord Hollick was also a member of the House of Lords Committee on Science and Technology 1995-6, a special advisor to the President of the Board of Trade and the Secretary of State for Trade and Industry 1997-8, and an advisor to successive leaders of the Labour party since 1987, including Margaret Becket and Peter Mandelson. In 2000 he established a cross-party and business group 'Britain in Europe' campaigning for UK's adoption of the Euro.
 
−
 
−
Lord Hollick is Chief Executive of United Business Media PLC, an international business information group with publishing, broadcasting and market research businesses. He was Managing Director of MAI PLC, a major international media and financial services group which merged with United News and Media PLC in 1996. He is chair of London's South Bank Centre.23 From 1995-7 he was a non-executive Director of Channel 5 Television Group Ltd.24 He is a Governor of the London School of Economics.25
 
−
 
−
In 1998 Lord Hollick was placed as ranking 32nd in a 'power list' put together by Fulcrum TV, and voted by a panel, of 'Britain's most powerful people'.26
 
−
 
−
Rodney Chase
 
−
 
−
Rodney Chase retired as Senior Non-Executive Director at the 2004 AGM. He has also been Non-Executive Director of Tesco PLC and Deputy Group Chief Executive of BP PLC.
 
−
 
−
Maria Lilja
 
−
Non-Executive Director of Diageo
 
−
Maria Lilja is a Non-Executive Director of Diageo. She was head of American Express Europe 1996-2000. She is also Non-Executive Chair of Mandator AB and Non-Executive Director of Bilia AB, Intrum Justitia AB, Observer AB and Poolia AB, all in Sweden.
 
−
 
−
Keith Oates
 
−
 
−
A Non-Executive Director before retiring at the 2004 AGM, who was also Senior Advisor to Coutts Bank, Monaco, Deputy chair of Marks and Spencers PLC before 1999, a BBC Governor, and Non-Executive Director of BT PLC;
 
−
 
−
Jonathan Symonds
 
−
Non-Executive Director
 
−
Jonathan Symonds, Non-Executive Director, is also a member of the Accounting Standards Board, joint Chair of the Business Tax Forum, and Chair of the 100 group of Finance Directors. He is also Chief Financial Officer of AstraZeneca PLC,27 which he joined in 1997. Before that he was a partner at KPMG.
 
−
 
−
William Shanahan
 
−
Non-Executive Director
 
−
A Non-Executive Director, William Shanahan has also been President of the Colgate-Palmolive company since 1992.28 He was appointed Non-Executive Director of Diageo in 1999.
 
−
 
−
Todd Stitzer
 
−
Non-Executive Director
 
−
Todd Stitzer, a Non-Executive Director appointed in 2004, is also Chief Executive of Cadbury Schweppes PLC, a role he was appointed to in 2003.29
 
−
 
−
Paul Walker
 
−
Non-Executive Director
 
−
Paul Walker, a non-executive director, is chief executive of the Sage Group PLC,30 which he joined in 1984, and a non-executive director of MyTravel Group PLC.31
 
−
 
−
Back to top
 
−
3.4 Subsidiaries
 
−
 
−
Diageo has 296 listed subsidiaries, many of which have 'Diageo' in their name, including,
 
−
 
−
Gleneagles Hotels Ltd32 33
 
−
 
−
Gleneagles Hotel
 
−
Auchterarder
 
−
Perthshire, PH3 1NF
 
−
 
−
The Gleneagles hotel will be the venue for the G8 summit hosted by Diageo in July 2005. 34
 
−
 
−
Brighton Grand Hotel Company Ltd
 
−
 
−
Haagendazs UK35
 
−
 
−
6 The Market
 
−
The Piazza
 
−
London WC2E 8RA
 
−
 
−
Haagendazs is a large American company producing ice cream. Some of their products have been investigated for GM products (see 'Corporate Crimes' section).36
 
−
 
−
3.5 Auditors
 
−
 
−
Diageo's auditors are KPMG Audit Plc 37
 
  
 +
== Key brands ==
 +
Diageo's key brands include:
 +
*'''Whisky''': Bell’s (UK market leader),Johnnie Walker (global market leader in Scotch whiskey), Johnnie Walker Pure Malt, J&B (European market leader in Scotch whiskey), J&B Rare Black and White, Haig, Spey Royal, White Horse, VAT 69, Buchanan’s, Dimple, Old Parr, Windsor Premier, Seagram’s 7 Crown, Seagram’s VO, Crown Royal Canadian Whiskey.  Single Malt Scotch Whiskys: Cragganmore, Glenkinchie, Oban, Distillery Malts, Hidden Malts, Cardhu.
 +
*'''Vodka''': Smirnoff (40% of global market share), Ciroc, Tanqueray Sterling Vodka.
 +
*'''Gin''': Gordon’s (around 50% of UK market share), Tanqueray (US market leader in imported gin), Gilbey’s Gin.
 +
*''Rum'': Captain Morgan (UK market leader in dark rum), Cacique, Brandenburg, Pampero, Myer’s Rum.
 +
*'''Brandy''': Bertrams VO Brandy.
 +
*'''Liquers''': Bailey’s (UK market leader in liquer), Romana Sambuca, Safari.
 +
*'''Schnapps''': Archers, Rumple Minze, Goldschlager, Black Haus.
 +
*'''Tequila''': Jose Cuervo (global market leader in Tequila), Don Julio.
 +
*'''Alcopops & Ready mixed drinks''': Smirnoff Ice (UK alcopop market leader, sharing 50% of  market together with Bacardi Breezer), Smirnoff Black Ice, Archer’s Aqua, Bailey's Glide, Ruski, UDL
 +
*'''Beer''': Guinness (global stout market leader), Harp, Kilkenny, Tusker, Smithwicks, Red Stripe
 +
*'''Wine''': Sterling Vineyards, Piat d’Or, Periquita Wines, Justerini & Brooks Wines, Casillero Wines, Blossom Hill Wines, José de Sousa Wines , Baron Philippe Wines, Barton & Guestier Wines, Beaulieu vineyards
 +
*'''Champagne''': Dom Perignon
  
 +
Diageo also has two joint ventures with [[LVMH|Moet-Hennessey]], [[Hennessey Cognac]] and [[Moet Chandon]].  Their major competitors include [[Allied Domecq]], [[Pernod Ricard]], and [[Bacardi]].
  
 +
==Resources==
 
*[[Diageo: Influence]]
 
*[[Diageo: Influence]]
 
*[[Diageo: Corporate Crimes]]
 
*[[Diageo: Corporate Crimes]]
 
*[[Diageo: Further Resources and Information]]
 
*[[Diageo: Further Resources and Information]]
−
 
+
*[[Diageo Scotland]]
 +
*[[Alcohol: UK Policy]]
 +
*[[European Commission and Alcohol Policy]]
  
 
==References==
 
==References==
 +
<references/>
  
−
# *{{note|1}} Paul Walsh, Diageo CEO, The London Business School Summit on Global Leadership, 28.06.04
+
[[Category:Transnational Corporations]][[Category:Food and Agriculture Industry]][[Category:Alcohol Industry]][[Category:Alcohol]][[Category:Financial sector lobbying]] [[Category:Tax avoidance]][[Category:Revolving Door]][[Category:EU Lobbying]]
−
www.diageo.com/download%5C3000---R495.pdf - viewed 18.01.05
 
−
# *{{note|2}} Diageo website: http://www.diageo.com/pageengine.asp?site_id=0&section_id=0&page_id=1015 - viewed 24.01.05
 
−
# *{{note|3}} Diageo website, http://www.diageo.com
 
−
# *{{note|4 Jo Revill, 'Mid-life drinkers who booze at home risk disease,' The Observer, 23.01.05;
 
−
# *{{note|http://observer.guardian.co.uk/politics/story/0,,1396586,00.html - viewed 07.02.05
 
−
# *{{note|5 Julia Finch, 'Brewing a set of Standards,' The Guardian 17.11.03, http://society.guardian.co.uk/givinglist/story/0,10994,1087122,00.html - viewed 25.01.05
 
−
# *{{note|6 Diageo Annual Report 2004, http://www.diageo.com/download%5C3000---R531.pdf p. 12 - viewed 24.01.05
 
−
# *{{note|7 Diageo Annual Report 2004, http://www.diageo.com/download%5C3000---R531.pdf - p.26 - viewed 24.01.05
 
−
# *{{note|8 http://uk.biz.yhoo.com/p/d/dge.1.html - viewed 02.01.05
 
−
# *{{note|9 http://finance.yahoo.com/q/pr?s=DEO - viewed 02.01.05
 
−
# *{{note|10 Diageo website http://www.diageo.com/download%5C3000---R532.pdf p.16 - viewed 02.01.2005
 
−
# *{{note|11 Diageo website http://www.diageo.com/pageengine.asp?status_id=3000&page_id=22&site_id=3&section_id=24. - viewed 24.01.05
 
−
# *{{note|12 Diageo website http://www.diageo.com/pageengine.asp?menu_id=4&section_id=; Thalidomide UK, http://www.thalidomideuk.com/ - viewed 04.02.05
 
−
# *{{note|13 Mike Verdin, ‘Guinness Four fail in fight for acquittal,’ BBC News Online 21.12.01 http://news.bbc.co.uk/2/hi/business/1723136.stm - viewed 26.11.04
 
−
# *{{note|14 Diageo Careers, http://www.diageo-careers.com/WhoWeAre-DidYouKnow.asp+distiller+diageo&hl=en - viewed 26.11.04
 
−
# *{{note|15 Paul Walsh, Diageo CEO, The London Business School Summit on Global Leadership, 28.06.04
 
−
# *{{note|www.diageo.com/download%5C3000---R495.pdf - viewed 18.01.05
 
−
# *{{note|16 Diageo Careers, http://www.diageo-careers.com/WhoWeAre-DidYouKnow.asp+distiller+diageo&hl=en - viewed 26.11.04
 
−
# *{{note|1 Keynote reports; Diageo annual review 2004, http://www.diageo.com/download%5C3000---R531.pdf - p.5 - viewed 20.01.05
 
−
# *{{note|1 'Diageo announces plan to move Guinness® brewing from GB to Ireland' 15.04.2004 http://www.diageo.com/pageengine.asp?menu_id=0&site_id=1&section_id=2&page_id=1129 last viewed 05.05.05
 
−
# *{{note|2 Diageo Annual Review 2004, http://www.diageo.com/download%5C3000---R530.pdf - p.84-162 - viewed 24.01.05
 
−
# *{{note|3 Diageo Annual Review 2004, http://www.diageo.com/download%5C3000---R530.pdf - p.5 - viewed 24.01.05
 
−
# *{{note|5 Diageo Annual Report 2004, http://www.diageo.com/download%5C3000---R531.pdf - p.26 - viewed 24.01.05
 
−
# *{{note|6 Diageo Annual Report 2004, http://www.diageo.com/download%5C3000---R531.pdf - viewed 24.01.05
 
−
# *{{note|7 Information about the officers can be found at Diageo's website http://www.diageo.com/pageengine.asp?menu_id=0&site_id=2&section_id=8&page_id=58; and in Who's Who 2004
 
−
# *{{note|8 Guardian press release, 26.08.04,
 
−
# *{{note|http://www.guardian.co.uk/pressoffice/pressrelease/story/0,,1294243,00.html viewed 24.01.05
 
−
# *{{note|9 Federal Express: 942 South Shady Grove Road, Memphis, Tennessee 38120, 901-369-3600; http://www.fedex.com; 14, Place Sainte Gudule, B-1000 Brussel, ++32 (0)2 515 88 00; UK contacts: http://www.fedex.com/gb/contact/
 
−
# *{{note|10 Centrica http://www.centrica.co.uk; Millstream, Maidenhead Rd, Windsor, SL4 5GD; Tel: 01753 494 000; Fax: 01753 494 001
 
−
# *{{note|11 Henley Management Centre, http://www.henleymc.ac.uk; Greenlands, Henley-on-Thames, Oxfordshire, RG9 3AU 01491 571454; Fax: 0 1491 571635; email: enquiries@henleymc.ac.uk
 
−
# *{{note|12 Paul Walsh, Diageo CEO, The London Business School Summit on Global Leadership, 28.06.04 http://www.diageo.com/download%5C3000---R495.pdf - viewed 18.01.05
 
−
# *{{note|13 Scottish Power; 1 Atlantic Quay, Glasgow, G2 8SP; http://www.scottishpower.com
 
−
# *{{note|14 Moet Hennessey Louis Vuitton, 65 Avenue Edouard Vaillant, 92100, Boulogne-Billancourt, France http://www.lvmh.com
 
−
# *{{note|15 http://www.hemscott.co.uk/guru_online_test_drive/ind_dir_biog.htm - viewed 18.01.05; Campaign Against the Arms Trade, http://www.caat.org.uk/information/publications/other/political-influence-0403.pdf - viewed 18.01.05
 
−
# *{{note|16 To view the DESO website: http://www.deso.mod.uk/policy.htm - viewed 18.01.05 For more on DESO: Campaign Against the Arms Trade, http://www.caat.org.uk/information/publications/other/political-influence-0403.pdf - viewed 18.01.05
 
−
# *{{note|17 Campaign Against the Arms Trade, http://www.caat.org.uk/information/magazine/0204/brothers-in-arms.php++lord+blyth+mod&hl=en - viewed 29.11.04
 
−
# *{{note|18 Anixter European HQ 1 York Rd, Uxbridge UB9 1RN, 01895 818181, europe@anixter.com, UK HQ 1st Floor, Wellington House, 4-10 Cowley Rd Uxbridge UB8 2XW 01895 276800, infomktg@anixter.com
 
−
# *{{note|19 Diageo News Release, 7 October 1999, 'Board Appointments at Diageo' http://www.diageo.com/pageengine.asp?menu_id=0&site_id=2&section_id=9&page_id=382
 
−
# *{{note|20 Institute for Public Policy Research,
 
−
# *{{note|www.ippr.org.uk/about/index.php?current=trustees - viewed 08.02.05
 
−
# *{{note|21 Institute for Public Policy Research, http://www.ippr.org.uk/research/index.php?current=28&detail=history - viewed 29.11.04
 
−
# *{{note|22 Julia Finch, 'Drink Firm's Shock for Bingers,' The Guardian, 09.10.04, http://www.guardian.co.uk/business/story/0,,1323368,00.html - viewed 10.02.05
 
−
# *{{note|23www.culture.gov.uk/global/press_notices/archive_2002/dcms23_2002.htm?month=February&properties=archive_2002%2C%2Fglobal%2Fpress_notices%2Farchive_2002%2F%2C - viewed 29.11.04
 
−
# *{{note|24 Channel 5, 22 Long Acre, London WC2E 9LY http://www.channel5.co.uk
 
−
# *{{note|25 http://www.mynottinghill.co.uk/nottinghilltv/celebs&gossip-lord-hollick.htm- -viewed 18.01.05
 
−
# *{{note|26 The Power List, Fulcrum TV, http://www.fulcrumtv.com/power.htm -viewed 05.05.2005
 
−
# *{{note|27}} AstraZeneca PLC, 15 Stanhope Gate, London W1K 1LN, 020 7304 5000, http://www.astrazeneca.co.uk
 
−
# *{{note|28}} Colgate-Palmolive http://www.colgate.com
 
−
# *{{note|29}} Cadbury Schweppes PLC, 25 Berkeley Sq., London W1J 6HB, 0800 279 9640, http://www.cadburyschweppes.com http://www.cadburyschweppes.com/EN/feedback/feedback.aspx?dept=Todd%20Stitzer - viewed 08.02.05
 
−
# *{{note|30}} The Sage Group PLC, North Park, Newcastle upon Tyne, NE13 9AA, 0191 294 3000, http://www.sage.co.uk/home.asp
 
−
# *{{note|31 MyTravel Group, Parkway Business Centre, 300 Princes Rd., Manchester M14 7QU, 0161 232 0066 http://www.mytravelgroup.com,
 
−
# *{{note|32}} http://fame.bvdep.com/cgi/template.dll?context=33Y78C&tpl=reportframe&bitnr=14627&pushlink=0 - viewed 01.12.05
 
−
# *{{note|33}} Gleneagles website, http://www.gleneagles.com - viewed 24.01.05
 
−
# *{{note|34}} Grampian TV, 10.06.04, http://northtonight.grampiantv.co.uk/content/default.asp?page=s1_1_1&newsid=4038 - viewed 24.01.05
 
−
# *{{note|35}} http://fame.bvdep.com/cgi/template.dll?context=33Y78C&tpl=reportframe&bitnr=513278&pushlink=0 - viewed 01.12.05
 
−
# *{{note|36}} http://www.btinternet.com/-clairejr/foodcomp/foodcomp.html - viewed 10.10.04
 
−
# *{{note|37}} KPMG website, http://www.kpmg.com/ - viewed 08.02.05
 

Latest revision as of 17:03, 3 February 2016

Alcohol badge.jpg This article is part of the Spinwatch public health oriented Alcohol Portal project.
"Great people, great brands, holistic performance. That is Diageo."
"Every day, everywhere, people enjoy our brands. Together we celebrate life responsibly."[1]

Diageo is a British multinational alcohol company and one of the biggest alcohol companies in the world. It sells alcohol in 180 countries, with a substantial presence in 30 countries.[2]

Clean, friendly and ethical image

The company was created in 1997 by the merger of Guinness PLC with Grand Metropolitan PLC (GrandMet). At that stage it was a large multinational with interests in food as well as drink. Today, the company has shed most of its food interests to concentrate on alcohol, acquiring new spirit brands. It projects an image of itself as a clean, friendly and ethically-oriented company with a commitment to "corporate social responsibility" (CSR)[3]. This includes both a professed concern with the harm alcohol can cause, and statements about what a great service the company is providing by producing such well-loved brands. As a result, the company manages to gloss over a number of issues for which it has received criticism, such as:

  • undermining small-scale and independent alcohol production, both in the UK and in East Africa (see Diageo: Corporate Crimes)
  • assisting a shift towards casualisation of employment terms (see: Diageo: Corporate Crimes)
  • specific instances of environmental damage and irresponsible marketing (see Diageo: Corporate Crimes)
  • Diageo's 'ethical' image has also allowed it a significant and increasing role in formulating government policy, both individually and through various alcohol industry bodies. Diageo's networks of links with policy-makers should be especially highlighted (see Diageo: Influence)
  • Diageo promotes the idea that the major problem of alcohol harm is anti-social behaviour caused by binge-drinking. Many health experts dispute the industry assumption about alcohol harm, suggesting that liver failure caused by sustained drinking, account for the majority of people treated in Accident and Emergency for problems caused by alcohol (see Diageo: Influence) [4].
Diageo HQ, First Central Business Park, Park Royal, London

Market share and ownership

In September 2004, Diageo was the 11th largest publicly quoted company in the UK in terms of market capitalisation [5]. Diageo Plc is incorporated as a public limited company in England and Wales. It is listed on the London Stock Exchange, as DGE, and on the New York Stock Exchange, as DEO. The company's turnover was £8.89 bn in 2004, with a total profit of £1.87 bn after exceptional items and tax [6]. It is the largest spirits company in the world, with many of the leading spirits brands (see section on Products and Projects in this profile). As well as spirits, it is the manufacturer of Guinness, and has a 79% share of the stout sector in Europe.

  • Number of employees

Various figures are available as to the number of Diageo's employees. These all suggest a reduction in number in the early 2000s, in part due to the company selling many of its non-alcohol divisions. YahooBiz suggests 38,955 employees in June 2003 (down from 62,124 in June 2002) [7]. Diageo's own website suggests 32,392 for 2004 [8] while elsewhere its 'Corporate Responsibility Report' suggests 23,720 in 2004 (as opposed to 24,561 in 2003) [9]. Whichever figure is accurate, they are employed in numerous small operations across the 180 countries Diageo works in.

  • Shareholder

Capital Group Companies, Inc. are the only major shareholders, with 123 million ordinary shares (4.01% of the issued ordinary share capital) and no different voting rights. No other major shareholders are listed in Diageo’s Annual Report. According to its Annual Review, Diageo has a total shareholder return (the change in capital value over a period of time of a listed company) of 39%, which makes it rank 6th amongst its competitors [10]

  • Annual turnover

Turnover in 2004 was £8.89 bn, with total profit £1.87 bn after exceptional items and tax. Operating profit before exceptional items and was £1.91 bn in 2004, down from £1.96 bn in 2003 [11].

  • Subsidiaries

Diageo has 296 listed subsidiaries, many of which have 'Diageo' in their name, including:

  • Gleneagles Hotels Ltd (Venue for 2005 G8 summit)[12]
  • Haagendazs is a large American company producing ice cream. Some of their products have been investigated for GM products (see 'Corporate Crimes' section)[13].

History

Diageo PLC was formed with the merger of Guinness PLC, its primary parent company, with Grand Metropolitan PLC (GrandMet), a hotel chain with brewing interests, in 1997. Guinness had already absorbed a number of other companies, including Distillers PLC [14]. Diageo's parent companies were involved in a number of controversial and high-profile scandals in the second half of the twentieth century, tarnishing their reputations and perhaps providing an impetus to the re-naming and re-imaging the company underwent when the merger took place. In 1958 Distillers PLC marketed and distributed the drug thalidomide as a treatment for morning sickness, which was found to produce severe deformities in babies [15]. In the 1986 'Guinness Affair,' four people including Guinness' former Chief Executive Ernest Saunders were convicted for illegally boosting share prices in a takeover bid [16]. (See Diageo: Corporate Crimes section of this profile for a more detailed account of these incidents)

Perhaps as a result of these incidents, the merger of 1997 brought about a re-branding and re-imaging of the company. The neutral-sounding and fairly meaningless name ‘Diageo PLC’ was chosen. Diageo explains this name as follows: 'the name "Diageo" combines the Latin word for "day" and the Greek word for "earth". Together, the two words mean celebrating life every day, everywhere.’ [17]. This is captured in another of its catchphrases, 'every day, everywhere, people are enjoying our brands.' [18].

Again in 2000 restructuring was evident. Paul Walsh become Chief Executive Officer as part of a strategic re-alignment of its business, also James Blyth aka Lord Blyth of Rowington succeeded Sir Anthony Greener as Chairman.[19].

Current strategy

Their current strategy is to grow strong brands, trademark brands to ensure maximum returns and dominate market share, and continuing to invest in emerging and developing markets while maing selective take overs [20]. The company indeed has had much to celebrate in recent years:

  • It has become a world leader in spirits production;
  • It has transformed its image through a huge PR campaign since 1997 and today is viewed as a clean and ethical company, and an enthusiastic proponent of corporate social responsibility (CSR) (see Diageo: Influence section for more on this);
  • Quite possibly assisted by this PR programme, Diageo has also been successful in building a good relationship with the British government. An ethos of corporate responsibility and self-regulation, and a professed commitment to fighting the harm caused by alcohol, has allowed them, together with other companies and industry-wide organisations, to evade regulation and to be involved in government policy, which has in turn been shaped around the alcohol industry's perception of alcohol and alcohol harm (alcohol as something that helps 'celebrating life every day, everywhere.’) [21]
  • In January 2009 Diageo enlisted the support of Lewis Hamilton the English Formula One racing star to help its campaign against the Scottish Government's efforts to limit alcohol relatd harm. Rachael Robertson, head of government affairs at Diageo, said ""Lewis Hamilton is a big role model. We can use the skills we employ to sell our product to push the message of responsible drinking, to change attitudes towards alcohol and its misuse." [22]

Connections: industry, government and beyond

Diageo's close ties with government, and strong interests in lobbying it, help make sense of its involvement in the G8 summit of July 2005, which took place at Gleneagles, a hotel in Perthshire in Scotland owned by Diageo. Diageo played a prominent role in the 2005 G8 Gleneagles Summit. Not only does it own the Gleneagles Hotel where the Summit took place, it has made its presence felt in determining the policies of the G8. As one of Africa's largest corporations, the company was part of the Business Contact Group of the Commission for Africa, which has essentially recommended a further opening up of markets in Africa to foreign investment (See Corporate Watch report, 'Bringing the G8 Home: Corporate Involvement in and around the G8 in Scotland 2005). Diageo representatives participate in a wide range of governmental activities including membership on a number of groups and committees including:

Policy Groups & Relationships with Policy Makers

Industry Groups

Other SAOs which Diageo is a member of around the world include:

These SAOs all share with Diageo a platform that the harm alcohol causes coexists with its benefits, and that in moderation, alcohol can be good for you. This approach is shaped by the interests of the industry, despite claims to independence.

Revolving door

  • Lord Davies of Abersoch, former Minister for Trade Promotion and Investment Department for Business, Innovation and Skills until May 2010 took up the role of non-executive director of Diageo in July 2010. The UK government's Advisory Committee on Business Appointments saw "no reason why he should not take up the appointment subject to a waiting period of 3 months from his last day in office, on the basis that he would not draw on any privileged information which was available to him as a Minister, and the condition that, for 2 years after leaving office he should not become personally involved in lobbying UK Government Ministers or Crown servants, including Special Advisers, on behalf of the firm." [26]

External lobbying help

In July 2010 PRWeek reported that Diageo GB 'signed over its public affairs and responsible drinking campaigns to Edelman as it prepares to go to battle with the Government over changes to alcohol tax'.

This was against the backdrop of David Cameron's planned reform of the Licensing Act along with a ban on below-cost selling and a policy decision on alcohol labelling.[27]

Edelman continues to hold the account as of 2015.

Former lobbying firms

Diageo hired lobbying firm Hanover Communications in September 2007 as its retained UK public affairs agency, switching from Reputation Inc. The move came as the Government stepped up its efforts to curb binge-drinking. Diageo was thought to be paying Hanover at least £100,000 a year. Hanover MD Charles Lewington said at the time: ‘We will be helping Diageo to raise awareness of its ­responsible-drinking ­activities in government. We will also be ­advising on ­ongoing ­discussions with ­officials about the best way of ­promoting responsible ­consumption.’[29]

The firm - one of the biggest funders of responsible drinking campaigns in the UK - and high-profile CEO Paul Walsh have in the past come out forcefully against minimum alcohol pricing and steep alcohol tax increases, as well as questioning the link between excessive drinking and advertising.[30]

EU Lobbying

Diageo have 5 lobbyists with European Parliament passes, allowing the bearer virtually unlimited access to the Parliament's buildings.[32]

Products and projects

Diageo manages 17 of the world’s top 100 premium spirits brands. Recently it has dropped non-alcohol products, selling Pillsbury, a large US firm producing baked foods and snacks, to General Mills in 2001, and selling Burger King, the fast food giant, in 2002, which has allowed the company to escape the current outcry against fast food. Diageo has bought much of the spirits division of Seagram, previously a major spirits company, and other alcohol brands, entrenching its position as a leader in spirits. This reflects a shift to consolidation evident in the spirits sector in general [33]

Board of Directors

[34]

Executive Committee

Lobbyists

  • Tim Rycroft Was Government Affairs Director UK, currently Corporate Relations Director Global Travel & Middle East
  • Ian Wright Corporate Relations Director

Others

Former Executive Staff


Key brands

Diageo's key brands include:

  • Whisky: Bell’s (UK market leader),Johnnie Walker (global market leader in Scotch whiskey), Johnnie Walker Pure Malt, J&B (European market leader in Scotch whiskey), J&B Rare Black and White, Haig, Spey Royal, White Horse, VAT 69, Buchanan’s, Dimple, Old Parr, Windsor Premier, Seagram’s 7 Crown, Seagram’s VO, Crown Royal Canadian Whiskey. Single Malt Scotch Whiskys: Cragganmore, Glenkinchie, Oban, Distillery Malts, Hidden Malts, Cardhu.
  • Vodka: Smirnoff (40% of global market share), Ciroc, Tanqueray Sterling Vodka.
  • Gin: Gordon’s (around 50% of UK market share), Tanqueray (US market leader in imported gin), Gilbey’s Gin.
  • Rum: Captain Morgan (UK market leader in dark rum), Cacique, Brandenburg, Pampero, Myer’s Rum.
  • Brandy: Bertrams VO Brandy.
  • Liquers: Bailey’s (UK market leader in liquer), Romana Sambuca, Safari.
  • Schnapps: Archers, Rumple Minze, Goldschlager, Black Haus.
  • Tequila: Jose Cuervo (global market leader in Tequila), Don Julio.
  • Alcopops & Ready mixed drinks: Smirnoff Ice (UK alcopop market leader, sharing 50% of market together with Bacardi Breezer), Smirnoff Black Ice, Archer’s Aqua, Bailey's Glide, Ruski, UDL
  • Beer: Guinness (global stout market leader), Harp, Kilkenny, Tusker, Smithwicks, Red Stripe
  • Wine: Sterling Vineyards, Piat d’Or, Periquita Wines, Justerini & Brooks Wines, Casillero Wines, Blossom Hill Wines, José de Sousa Wines , Baron Philippe Wines, Barton & Guestier Wines, Beaulieu vineyards
  • Champagne: Dom Perignon

Diageo also has two joint ventures with Moet-Hennessey, Hennessey Cognac and Moet Chandon. Their major competitors include Allied Domecq, Pernod Ricard, and Bacardi.

Resources

References

  1. ↑ Diageo website Home Page - viewed 24.01.05
  2. ↑ Julia Finch, The Guardian 17.11.03, 'Brewing a set of Standards,' - viewed 25.01.05
  3. ↑ Diageo website, About us accessed 1 June 2008
  4. ↑ Jo Revill, The Observer, 23.01.05; 'Mid-life drinkers who booze at home risk disease,' accessed 07.02.05
  5. ↑ Diageo Website , Annual Report 2004 (p.12) accessed 24.01.05
  6. ↑ Diageo Website, - Annual Report 2004 (p.26) - viewed 24.01.05
  7. ↑ Yahoo Business Website Diageo - viewed 02.01.05
  8. ↑ Yahoo Finance Diageo - viewed 02.01.05
  9. ↑ Diageo website Diageo Pdf (p.16) - viewed 02.01.2005
  10. ↑ Diageo Annual Review 2004, - Annual Report 2004 p.5 - viewed 24.01.05
  11. ↑ Diageo Annual Report 2004, - Annual Report 2004p.26 - viewed 24.01.05
  12. ↑ FAME Database Diageo- viewed 01.12.05, subscription required, accessed 01.12.05
  13. ↑ FoodComp Home - viewed 10.10.04
  14. ↑ Diageo Website Our History accessed 1st June 2008
  15. ↑ Thalidomide UK Website Diageo - viewed 04.02.05
  16. ↑ Mike Verdin, BBC News Online 21.12.01 ‘Guinness Four fail in fight for acquittal,’ - viewed 26.11.04
  17. ↑ Diageo Careers, Who We Are - viewed 26.11.04
  18. ↑ Paul Walsh, Diageo CEO, The London Business School , 28.06.04 Summit on Global Leadership - viewed 18.01.05
  19. ↑ Diageo Website Our History accessed 1st June 2008
  20. ↑ Diageo Website Our Strategy accessed 1st June 2008
  21. ↑ Diageo Careers Who We Are - viewed 26.11.04
  22. ↑ Richard Bath and Kate Foster, Scotland on Sunday 25th January Lewis Hamilton joins drive against booze restrictions accessed 1st march 2009
  23. ↑ House of Commons Register of All Party Groups Country Groups: All-Party Parliamentary Group on Nigeria accessed 16th June 2008
  24. ↑ ALEC Website ALEC Board Members Accessed 25th August 2008
  25. ↑ Scottish Parliament, Cross-Party Groups in the Scottish Parliament- Registration Form, no date given, accessed 5th October 2011
  26. ↑ Advisory Committee on Business Appointments, Twelfth Annual Report, 2010-2011
  27. ↑ Register 1st September 2014 - 30th November 2014 APPC, accessed 29 January 2015
  28. ↑ Register 1st June 2014 - 31st August 2014 APPC, accessed 29 January 2015
  29. ↑ Diageo hires Hanover as alcohol concerns grow, PR Week, 20 Sept 2007
  30. ↑ Matt Cartmell, Drinks giant Diageo hands 'responsible drinking' brief to Edelman, PR Week UK, 22 July 2010, accessed 14 October 2011
  31. ↑ Portland PR clients, Sep-Nov15, APPC.org, accessed 3 February 2016
  32. ↑ Companies declaring the most lobbyists Lobby Facts, 26 January 2015, accessed 3 February 2015
  33. ↑ Keynote reports p.5 - Diageo annual review 2004 - viewed 20.01.05
  34. ↑ Diageo Website Board of Directors accessed 1st June 2008
  35. ↑ Centrica Management Accessed 26th August 2008
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