Diageo plc engages in the beverage alcohol business with brands in spirits and beer worldwide. The company produces its brands from approximately 150 sites in approximately 30 countries. The company’s 21 markets are designated as import markets, import and third party production markets, or import and local production markets. Strategy In developed markets, the company’s strategy is to drive premiumisation through spirits price tiers up to its reserve portfolio. In emerging markets, the company’s strategy is to develop from an import-based premium spirits model to become a local player where appropriate, participating in categories that give the company the scale and access to the fast growing middle-class consumer. Spirits Spirits are produced in distilleries located worldwide. The company owns 29 Scotch whisky distilleries in Scotland, 2 whisky distilleries in Canada, and a whiskey distillery in the United States. The company produces Smirnoff internationally. Ketel One and Cîroc vodkas are purchased as finished product from The Nolet Group and Eurowinegate, respectively. Gin distilleries are located in both the United Kingdom and the United States. Baileys is produced in the Republic of Ireland and Northern Ireland. Rum is blended and bottled in the United States, Canada, Italy, and the United Kingdom; and is distilled and blended in the U.S. Virgin Islands and in Australia, Venezuela, and Guatemala. Raki is produced in Turkey, Chinese spirits are produced in Chengdu, in the Sichuan province of China, cachaça is produced in Ceará State in Brazil, and Don Julio tequila in Mexico. The company’s maturing Scotch whisky is located in warehouses in Scotland, its maturing Canadian whisky in La Salle and Gimli in Canada and its maturing American whiskey in Kentucky and Tennessee in the United States. The company owns United Spirits Limited, an alcoholic beverage company in India that sells Indian-Made Foreign Liquor. Beer The company’s principal brewing facility is at the St James’s Gate brewery in Dublin where the capacity is expanded to brew all beers sold in Europe and for global exports in particular to the United States. The company has breweries in various African countries; Nigeria, Kenya, Ghana, Cameroon, Ethiopia, Tanzania, Uganda, and Seychelles. Guinness is brewed by approximately 50 third parties worldwide under licence arrangements. Guinness flavour extract is shipped from Ireland to all overseas Guinness brewing operations, which use the flavour extract to brew Guinness locally. Guinness Draught in cans and bottles is packaged at Runcorn and Belfast in the United Kingdom. The Runcorn facility performs the kegging of Guinness Draught, which is transported to Great Britain in bulk. Ready to Drink The company produces a range of ready to drink products mainly in the United Kingdom, Italy, South Africa, Australia, the United States and Canada. Research and Development In the year ended 30 June 2016, the company’s research and development expenditure amounted to £28 million. Disposition In 2015, the company completed the sale of its Jamaica, Singapore and Malaysian beer interests to Heineken. In 2016, the company completed the sale of the majority of its wine interests in the United States and its UK based Percy Fox businesses to Treasury Wine Estates. In addition, in the year ended 30 June, 2016, the company disposed of its other US wine interests. In the year ended 30 June, 2015, the company disposed of the entire share capital of The Old Bushmills Distillery Company Limited to Jose Cuervo Overseas. Competition In spirits, the company’s major global competitors are Pernod Ricard, Beam Suntory, Bacardi, and Brown-Forman. In beer, the company competes with AB InBev, Heineken, SABMiller, Molson Coors, and Carlsberg. Seasonality Approximately 40% of the company’s annual net sales occur in the last four months of each calendar year. History Diageo plc was founded in 1886. The company was incorporated in 1886.
diageo plc (DGE:Dublin)
London, NW10 7HQ
Phone: 44 20 8978 6000
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