Diageo is one of the world’s largest alcohol concerns, selling more than 200 brands in 180 countries. The company is based in London and owns 150 production facilities in 30 countries, it owns such world-famous brands as Johnnie Walker, Bailey’s, Guinness, Smirnoff and others, and Diaggio also owns a 37% stake in Moët Hennessy.
For a long time, the company was generally the largest alcohol concern in the world, but in 2017 it was overtaken by the Chinese corporation Kweichow Moutai. Unlike Diageo, their Chinese competitor is engaged not only in the production of alcohol (mainly Maotai liquor), but also produces soft drinks, food products, and packaging materials.
History
Diaggio is a relatively young corporation, it has been operating for a little over 20 years, since 1997. However, the company itself claims that its history begins much earlier – since the opening of the oldest of its predecessors – the Justerini & Brooks winery, in 1749.
The word “Diaggio” does not exist – the name of the company is made up of two roots, dia (Latin) and geo (Greek), denoting, respectively, “day” and “world”. The resulting word echoes the corporation’s slogan: “Celebrating life – every day, everywhere.”
Officially, the starting point of the history of “Diaggio” is the moment of the merger of Guinness and Grand Metropolitan. From the Guinness side, the deal was initiated by Anthony Greener and Philip Yea, from the Grand Metropolitan, the documents were signed by George Bull and John McGrath. Anthony Griner became the first executive director of the corporation, and Javier Ferrán now holds this post.
In 2000, the company sold the Burger King and Pillsbury chains of eateries and concentrated on the production of alcohol. A year later, she expanded her range with the Captain Morgan and Crown Royal brands. In 2011, Turkish giant Mey Icki joined the corporation, and in 2012, Brazilian cachaca producer Ypioca, Ethiopian brewery Meta Abo, Chinese brand Shui Jing Fang and Vietnamese vodka Hanoi joined the corporation. In the same year, the company acquired Indian market leader United Spirits. 2014 was marked by the acquisition of Peligroso tequila, and in 2015 Diageo sold Gleneagles Hotel in Scotland and some wine brands, focusing on the production of spirits.
Diaggio assortment
The company produces a wide variety of alcoholic beverages, including:
- Beer (Guinness, Harp Lager, Smithwick’s, etc.).
- Scotch whiskey (Johnnie Walker, Bell’s, Black & White, etc.).
- Vodka (Smirnoff, Cîroc, Ketel One, etc.).
- Gin (Tanqueray, Gordon’s, Gilbey’s, etc.).
- Rom (Captain Morgan, Pampero, Zacapa, etc.).
- Бурбон (Bulleit, I. W. Harper, Orphan Barrel).
- Whiskey of different styles (Seagram’s Seven Crown, Crown Royal, George Dickel, Roe & Co).
- Текилу (Don Julio, DeLeón, Casamigos)
- Шнапс (Rumple Minze, Archers).
- Байцзю (Shui Jing Fang, New Sticks).
- Ликеры (Baileys, Sheridans, Godiva).
- Ракы (Yeni Rakı, Tekirdağ Rakı, Club Rakı, Altınbaş).
Policy
Despite belonging to the alcohol industry, Diageo promotes moderate alcohol consumption and seeks to raise the awareness of its customers so that they make an informed decision – to drink or not to drink.
In parallel with this, Diaggio invests a lot of money in the formation and development of a culture of whiskey consumption, especially scotch.
The alcohol awareness program is called Positive Drinking.
Success Story
The success of Diageo is explained very simply – the company does not take risks and invests in brands that have already achieved success and recognition. 25% of the corporation’s products are scotch, in addition, “Diaggio” is not exchanged for passing and affordable brands. If vodka – then one of the best in the world, Smirnoff, if cream liqueur – then the legendary Bailey’s. Almost half of the company’s budget is spent on the development of six key brands, while the remaining 190+ brands account for just over 50%.
Interesting Facts
- Diaggio created a kind of museum-shop-closed clubs for the sale of Johnnie Walker (Johnnie Walker Houses) in Shanghai, Beijing and Seoul. These “embassies”, as they are called in Diageo, host tastings of elite brands of scotch, hold dinner parties, in which only VIP guests can participate by special invitations.
- The company generously finances scientific research to optimize the production, storage and sale of alcohol. Diageo’s “scientific partners” include chemical giant DuPont, as well as several of the world’s largest universities.
- One of the distinguishing features of the concern is the love for bright, memorable beverage packaging – a unique container is developed for each Diageo brand, the bottle has an original shape and a recognizable design.