Diageo plc ( ) is a British multinational alcoholic beverage company, with its headquarters in London, England. It operates from 132 sites around the world. It is a major distributor of Scotch whisky and other spirits. Distilleries owned by Diageo produce 40% of all Scotch whisky with over 24 brands, such as Johnnie Walker, J&B and Old Parr.
Its leading brands include Guinness, Smirnoff, Baileys liqueur, Captain Morgan rum and Tanqueray and Gordon's 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 plc 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.
In 1997, Diageo sold Bombay Sapphire gin to Bacardi.
In 1998, Diageo sold Dewar's scotch whisky to Bacardi.
In 2000, Diageo sold Pillsbury to General Mills.
In 2001, Diageo acquired the Seagram's spirits and wine businesses.
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 2003, Diageo signed a joint venture with tequila brand Jose Cuervo owners to buy a 50 per cent stake of Don Julio tequila 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 Proximo Spirits 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.