Diageo is an invented name that was created by the branding consultancyWolff Olins in 1997.[4] The name is composed of theLatin worddiēs, meaning "day", and theGreek rootgeo-, meaning "earth"; and is meant to reference the company slogan "Celebrating Life, Every Day, Everywhere".[5][6]
Diageo was formed in 1997 from the merger ofGuinness plc andGrand Metropolitan. Its creation was driven by the executives Anthony Greener andPhilip Yea at Guinness,[7] along with George Bull and John McGrath of Grand Metropolitan.[8] Anthony Greener was the first executive chairman.[9] Shares in Diageo began trading on the London Stock Exchange on 17 December 1997.[10]
As a legacy of the merger, Diageo owned a number of brands, businesses, and assets which were not in the core alcoholic drinks category. The company has gradually disposed of these assets to focus on beverages as its core business.[11][12] This included the sale of thePillsbury Company toGeneral Mills in 2000,[13] and the 2002 sale of theBurger King fast food restaurant chain to a consortium led by US firm Texas Pacific for US$1.5 billion.[14]
The predecessor company Grand Metropolitan had been a major owner of hotels, owning what is nowIntercontinental Hotels prior to divestment before merging into Diageo,[15] but the company still owned theGleneagles Hotel inPerthshire, which had hosted events including theRyder Cup andG8 summit. In 2015 Diageo reached an agreement to sell the hotel to the Ennismore Group, already owners ofThe Hoxton hotels.[16]
In 2015, the company made major sales in both the beer and wine categories, selling theRed Stripe beer brand, along with interests in other breweries, and the rights to Guinness in some territories toHeineken,[21][22] as well as the sale of most of its wine business toTreasury Wine Estates.[23] The separate 2019 sale of the remaining wine brands including Navarro Correas andChalone Vineyard saw Diageo exit the category.[24]
Whilst Diageo did acquire South African beer producer United National Breweries (UNB) in April 2015 shortly before the Red Stripe sale was made,[25] they divested it again in the second half of 2019.[26]
In December 2023 it was speculated in the media that Diageo would exit from the beer market entirely,[27] potentially including the Guinness brand,[28] but this was denied by the company.[29]
The business has grown with purchases of alcohol businesses around the world, including the 2011 part-ownership and 2013 full acquisition of the Chinesebaijiu manufacturer Sichuan Shuijingfang Company in China.[30][31]
The company further acquired Turkish liquor company Mey Icki for US$2.1 billion in 2011,[32][33] and in 2012 followed this with Braziliancachaça manufacturerYpióca for £300 million,[34] and the IndianUnited Spirits which they acquired a majority stake for £1.28 billion.[35][36]
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.[37][38]
In December 2015, Diageo announced a US$10 million investment in Danish whisky brandStauning, to facilitate expansion of production.[39]
In February 2017, Diageo announced plans to open a Guinness brewery and tourist attraction inBaltimore County, Maryland.[40] The brewery could potentially host as many as 300,000 visitors per year.[41]
In October 2021, Diageo completed a £185m investment in Scotch whisky tourism with the royal opening byPrince Charles, Duke of Rothesay, of its centrepiece visitor centre inEdinburgh,Scotland, promoting the Johnnie Walker brand of blended Scotch whisky.[42]
In October 2021, Diageo announced plans to invest $500m to expand its manufacturing in Mexico for the tequila category. Construction of the new facilities inJalisco, Mexico is expected to begin in 2021.[43]
Diageo announced plans to build a €200 million brewery inNewbridge, County Kildare, Ireland in July 2022. In February 2024,High Court proceedings were lodged againstAn Bord Pleanála by anAthy resident opposing the decision to approve the project.[44] After mediation talks with Diageo, the challenge was withdrawn in April.[45]
In March 2023, it was announced thatDebra Crew would succeedSir Ivan Menezes as CEO of the company.[48] Crew started her role a month ahead of plan after Menezes died on 7 June 2023.[49]
In May 2023, it was announced that Diageo has provided funding to establish the British Aluminium Consortium for Advance Alloys (BACALL), a collective of industry experts who will create a circular economy in the UK.[50]
Diageo acquired a 50% stake inDon Julio tequila through a joint venture with ownerJose Cuervo, for which they paid US$100 million in 2003.[57] They later obtained full ownership of the brand after agreeing to sellBushmills Irish whiskey toProximo Spirits, who had since acquired Jose Cuervo, in exchange for US$408 million and full ownership of the tequila brand.[58]
In 2004, Diageo sold the inactiveColeburn distillery buildings and contents to the Winchester Brothers with plans to transform the distillery grounds into a whisky resort.[59]
Diageo formed a relationship with rapperSean Combs in an "equal-share venture" in 2007 to promote theCîroc vodka brand,[60] and this led to the joint purchase of theDeLeón Tequila brand in 2013. The partnership was terminated in 2024 after a legal dispute, leaving Diageo the sole owner of both brands.[61]
In 2007, Diageo sold the inactivePort Charlotte distillery buildings and contents to The Bruichladdich Distillery Co. Ltd.[62]
In September 2022, Diageo sold Archers brand to De Kuyper Royal Distillers.[70]
In October 2022, it was announced Diageo had acquired the Australian cold-brew coffee liqueur brand, Mr Black.[71]
In November 2022, it was announced that Diageo would acquire Balcones Distilling, a whiskey distillery based inTexas.[72]
In October 2023, Diageo sold Windsor Global, which owns blended Scotch brand Windsor, to private equity firm PT W Co ofSouth Korea, sponsored by the Pine Tree Investment & Management Co.[73]
In February 2024, a report claimed Diageo was looking to sell the brandsPimm's,Safari andPampero Rum.[74] BothSafari andPampero rum were sold in July 2024.[75][76]
On 19 March 2024, Diageo reopenedPort Ellen distillery after 40 years of closure and a £185 million (US$235m) restoration.[77]
In November 2024, the company formed Diageo Luxury Group, a new luxury division to combine its luxury spirits and experiences, with brands likeBrora,Port Ellen and the company's 15 brand homes and distiller experiences. The company said it would also help to growJusterini & Brooks.[78]
Diageo's head office from 1996-2022 inPark Royal, West London, in 2005.
Diageo's head office is inGreat Marlborough Street, London after moving in 2022 from its previous location inPark Royal,London Borough of Brent,[80] on the site of a formerGuinness brewery[81] which had closed in 2004 after producing beer since 1936.[82] Diageo's previous head office facility had been located inHenrietta Place, in theMarylebone district of theCity 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.[83]
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.[96]
In June 2023, the company's subsidiary,Mortlach distillery inMoray,Scotland, was awarded the "Whisky of the Year" prize in the annual International Whisky Competition for its Gordon & MacPhail Connoisseurs Choice 1989 Mortlach single malt Scotch.[97]
In December 2003, Diageo provoked controversy over its decision to change itsCardhu brand Scotch whisky from asingle malt to ablended malt whilst retaining the original name and bottle style. Diageo took this action because it did not have sufficient reserves to meet demand in the Spanish market, where Cardhu had been successful. After a meeting of producers, Diageo agreed to make changes.[98] In 2006, the Cardhu brand changed back to being a single malt.[99]
In May 2012, Scottish craft breweryBrewDog revealed that Diageo had threatened to withdraw funding from theBritish Institute of Innkeeping Scotland's annual awards if BrewDog was to be named winner of the Best Bar Operator award. Diageo was forced to issue an apology.[100][101][102]
In March 2015, Diageo released an advertising campaign showing a young woman crying after a night out, as an older woman, likely her mother, looks at her from the doorway, and the caption, "Who's following in your footsteps? Out of control drinking has consequences". The ad probably implied that the girl had been assaulted on the way home, as a result of her drinking that night. The director of Rape Crisis Network Ireland said Diageo "blames victims of sexual violence for the crimes that have been committed against them. This is a harmful, regressive and hurtful message which targets the vulnerable."[103]
Diageo received a major backlash from the public and theScottish Government for its controversial 2009 decision to close Johnnie Walker production in Kilmarnock, birthplace of the brand's founder and production hub since 1820.
In July 2009, Diageo announced that, after nearly 200 years of association with the town ofKilmarnock, Scotland, they would be closing theJohnnie Walker blending and bottling plant[104] as part of a restructuring to the business, with work moved to Diageo's other two sites inShieldhall andLeven.[105] It would make 700 workers unemployed and caused outrage from the press, local people, and politicians. A campaign against the decision was launched by the localSNP MSPWillie Coffey andLabour MPDes Browne. A petition was drawn up against the plans, which also involved the closure of the historicPort Dundas grain distillery in Glasgow.[106] The Johnnie Walker plant in Kilmarnock closed its doors in March 2012 and the buildings were subsequently demolished a year later.[107]
In April 2011, the National Puerto Rican Coalition planned to run a series of ads in New York City and Puerto Rico urging a boycott of Diageo-owned alcoholic drinks to protest the corporation's production move of itsCaptain Morgan rum fromPuerto Rico to the U.S. Virgin Islands,[108] which will provide it with US$2.7 billion in tax benefits over 30 years.[109]
In August 2011, Diageo agreed to pay more than US$16 million to settle U.S. civil regulatory charges that it made improper payments to foreign officials. Regulators accused the British company of violating the U.S.Foreign Corrupt Practices Act through its subsidiaries to obtain lucrative sales and tax benefits for its Johnnie Walker and Windsor Scotch whiskies and other brands.[110]
In January 2020, Diageo agreed to pay US$5 million to settle charges brought by the USSecurities and Exchange Commission that alleged the company had pressured distributors to buy products in excess of demand in order to hit performance goals.[111][112]
Diageo's Gimli Plant inGimli, Manitoba, Canada, the global supply plant forCrown Royal (the top-selling Canadian whisky in United States[113])
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US$20.269 billion (2024)[1]
US$6.001 billion (2024)[1]
