Diageo facts for kids

Quick facts for kids
Diageo plc

Diageo world headquarters in Park Royal, London, UK
Type	Public limited company
Traded as	LSE: DGE NYSE: DEO FTSE 100 Component
Industry	Beverages
Predecessors	Guinness Brewery Grand Metropolitan
Founded	1997; 27 years ago (1997)
Headquarters	London, England, UK
Key people	Javier Ferrán (Chairman) Ivan Menezes (chief executive officer) Lavanya Chandrashekar (chief financial officer)
Products	Alcoholic beverages: spirits, beer and wine
Revenue	£22.448 billion (2022)
Operating income	£4.409 billion (2022)
Net income	£3.338 billion (2022)
Total assets	£36.516 billion (2022)
Total equity	£9.514 billion (2022)
Number of employees	27,775 (2022)
Subsidiaries	United Spirits (54.8%)

Diageo plc (/diˈædʒioʊ/) is a multinational alcoholic beverage company, with its headquarters in London, England. It operates from 132 sites around the world. It was the world's largest distiller before being overtaken by Kweichow Moutai of China in 2017. It is a major distributor of Scotch whisky and other sprits.

Its leading brands include Johnnie Walker, Guinness, Smirnoff, Baileys liqueur, Captain Morgan rum and Tanqueray gin.

Diageo has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It has a secondary listing on the New York Stock Exchange.

Name

Diageo is an invented name that was created by the branding consultancy Wolff Olins in 1997. The name is composed of the Latin word diēs, meaning "day", and the Greek root geo-, meaning "world"; and is meant to reference the company slogan "Celebrating Life, Every Day, Everywhere".

History

Diageo was formed in 1997 from the merger of Guinness Brewery and Grand Metropolitan. Its creation was driven by the executives Anthony Greener and Philip Yea at Guinness, along with George Bull and John McGrath of Grand Metropolitan. Anthony Greener was the first executive chairman. Shares in Diageo began trading on the London Stock Exchange on 17 December 1997.

Diageo sold Bombay Sapphire gin to Bacardi in 1997.

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

In 2001, Diageo acquired the Seagram's spirits and wine businesses.

In 2003, Diageo signed a joint venture with tequila brand Jose Cuervo to buy Don Julio Tequila, selling Jose Cuervo a 50 per cent stake for US$100 million.

In February 2011, Diageo agreed to acquire the Turkish liquor company Mey Icki for US$2.1 billion.

In May 2012, Diageo agreed to acquire Ypióca, the largest-selling brand of premium cachaça in Brazil, for £300 million.

In June 2012, Diageo announced a £1 billion investment in Scotch whisky production over the following five years, with at least one new distillery to be constructed, several existing facilities to be expanded, and overall production capacity to be increased by 30 to 40 per cent. This did not, however, involve retaining the original Johnnie Walker plant, in Kilmarnock, which had already closed its doors in March of the same year.

In November 2012, Diageo acquired 53.4 per cent stake in the Indian spirits company United Spirits for £1.28 billion.

Since 2011, Diageo has had a controlling stake in the parent company Sichan Chengdu Shuijingfang Group Company, which it bought outright in 2013.

In November 2014, Diageo agreed to sell Bushmills Irish whiskey to Jose Cuervo in exchange for US$408 million and full ownership of tequila brand Don Julio.

In April 2015, Diageo acquired a 100 percent share in South African beer producer United National Breweries (UNB), but it was announced in December 2018 that Diageo had entered into an agreement for the sale of UNB, expected to close in the second half of 2019.

In October 2015, Diageo announced the sale of most of its wine business to Treasury Wine Estates. Other brands, such as Navarro Correas and Chalone Vineyard, were sold separately.

In December 2015, Diageo announced a US$10 million investment in Danish whisky brand Stauning, to facilitate expansion of production.

In March 2016, the company sold Grand Marnier, a cognac and bitter orange-based liqueur, to the Italian beverage company Campari Group.

In February 2017, Diageo announced plans to open a Guinness brewery and tourist attraction in Baltimore County, Maryland. The brewery could potentially host as many as 300,000 visitors per year.

In June 2017, the Casamigos tequila brand – a super-premium US-based tequila, launched in 2013 – became the latest addition to Diageo.

In February 2018, Diageo announced plans for limited edition bottles of its 12-year-old Black Label blended whisky named Jane Walker, as opposed to Johnnie Walker, to be sold. The label featured a striding woman on the label, rather than the top-hatted man normally associated with the brand.

In November 2018, Diageo agreed to sell Seagram's VO, Seagram's 83, Myers's Rum, Popov vodka, Booth's Gin, Goldschläger, Yukon Jack, Sambuca, and 11 other brands to the Sazerac Company for US$550 million.

In February 2019, Diageo increased its stake in Chinese baijiu company Sichuan Shuijingfang Company Limited (SJF) to almost 70% through a partial-tender offer.

In August 2019, Diageo bought the majority stake in Seedlip, a non-alcoholic spirits brand.

In January 2020, Diageo agreed to pay US$5 million to settle charges brought by the US Securities and Exchange Commission that alleged the company had pressured distributors to buy products in excess of demand in order to hit performance goals.

In October 2021, Diageo announced plans to invest $500m to expand its manufacturing in Mexico for the tequila category. Construction of the new facilities in Jalisco, Mexico is expected to begin in 2021.

In October 2022, it was announced Diageo had acquired the Australian cold brew coffee liqueur brand, Mr Black.

Brands

Diageo's beverage brands include:

Scotch whisky: Johnnie Walker, Buchanan's, Cardhu, Justerini & Brooks, Bell's, Black & White, White Horse, Logan, Caol Ila, Vat 69, Oban, Talisker, Lagavulin, Glenkinchie, Dalwhinnie, Cragganmore, Clynelish, The Singleton (Glen Ord, Dufftown, Glendullan), Dimple, Royal Lochnagar, Glen Elgin, Knockando, Windsor, Grand Old Parr, Auchroisk, Benrinnes, Blair Athol, Dailuaine, Glenlossie, Glen Spey, Inchgower, Linkwood, Mannochmore, Mortlach, Strathmill, Teaninich.

Irish whiskey: Roe & Co

American whiskey: Bulleit, Seagram's Seven Crown, George Dickel

Canadian whisky: Crown Royal, Piehole Whiskey

Brandy: Cîroc VS

Vodka: Smirnoff, Cîroc, Ketel One

Rum: Captain Morgan, Bundaberg, Pampero, Cacique, Zacapa

Mixed drinks: Smirnoff Cocktails, Loyal 9 Cocktails

Liqueur: Baileys, Sheridan's, Pimm's

Tequila: Don Julio, DeLeón, Casamigos

Gin: Aviation Gin, Gordon's, Tanqueray, Gilbey's

Various: McDowell's

Baijiu: Shui Jing Fang,

Rakı: Yeni Rakı, Tekirdağ Rakısı, Kulüp Rakı, Altınbaş, İzmir Rakısı, Civan Rakı, Tayfa Rakı

Cachaça: Ypióca

Beer: Guinness, Harp Lager, Hop House 13, Kilkenny, Rockshore Irish Lager, Senator, Meta Abo, Smithwick's, Tusker

Cider: Rockshore Apple Cider

Hard seltzer: Rockshore Hard seltzer

Worldwide

Diageo operates in 180 countries across five regions: North America, Europe, Asia Pacific, Africa, and Latin America and the Caribbean.

Awards and rankings

In 2016, Diageo was ranked 11th out of 4,255 companies worldwide for diversity and inclusiveness in the Thomson Reuters Diversity and Inclusion (D&I) Index.

Operations

Diageo also owns a 34% stake in the Moet Hennessy drinks division of French luxury goods company LVMH.

In 2017, the company was awarded top place in the Institute of Directors' and Chartered Quality Institute's Good Governance Index.

Head office

Diageo's head office is in Great Marlborough Street, London after moving from its previous location in Park Royal, London Borough of Brent, on the site of a former Guinness brewery which had closed in 2004 after producing beer since 1936. Diageo's previous head office facility had been located in Henrietta Place, in the Marylebone district of the City of Westminster in London, since 1996. In 2009, Diageo announced that it was closing the Henrietta Place facility as part of a cost reduction programme and moved its employees to the Park Royal site.

See also

In Spanish: Diageo para niños