Diageo

From Academic Kids

Diageo plc is a multinational alcoholic drinks and foods business listed on the London Stock Exchange. The company was formed from the merger of Guinness plc and Grand Metropolitan plc.

Diageo is the holding company for the worldwide brewing interests of Guinness, some leading international drinks brands such as Smirnoff, Captain Morgan, Crown Royal, J&B, Seagram 7 Crown, VO, Johnnie Walker, Tanqueray and Baileys Irish Cream, Sterling Vineyards, Beaulieu Vineyards, George Dickel, and operates the Scottish whisky distilleries of Blair Athol, Caol Ila, Cardow, Clynelish, Cragganmore, Dalwhinnie, Glenkinchie, Glen Ord, Lagavulin, Oban, Royal Lochnagar and Talisker. It is also a distributor of Jose Cuervo.

In 2002 Diageo sold the Burger King fast food restaurant chain worldwide to a consortium led by US firm Texas Pacific for $1.5bn. Until 2000, Diageo owned Pillsbury which it sold to General Mills.

Cardhu controversy

In December 2003 Diageo provoked controversy over its decision to change its Cardhu brand Scotch whisky from a single malt to a vatted malt (also known as a pure 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. All other firms in the Scotch whisky industry opposed this change. They claimed that changing the composition of the whisky (to a supposedly inferior product) while keeping the original name and bottle style would confuse drinkers and damage the reputation of single malt whisky and the Scotch whisky industry in general. Whereas the Scotch Whisky Association (SWA) was unwilling to react, William Grant & Sons led other smaller distillers in the campaign to make Diageo revert their decision. After a meeting of producers, Diageo agreed to make changes. As a result, the authority of the SWA was significantly undermined.

External link

de:Glenmorangie

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