Diageo

Diageo is one of the world's largest producers of alcoholic beverages. It appeared on the market in 1997 as a result of the merger of the largest Grand Metropolitan and Guinness Brewery. The name was conceived and designed by the English agency Wolff Olins. The name ‘dia’ means ‘day’ and ‘geo’ means ‘world.’ Diageo's headquarters are located in London. The company is listed on the New York and London stock exchanges.

Characteristics of alcohol companies:

History

The world first heard about Diageo in 1997, when two large companies, Guinness and Grand Metropolitan, merged. However, the brands they owned had already gained fame back in the 17th century. Let's trace the history of the famous Diageo from its very beginnings.

Guinness

Guinness is a beer brand owned by the company. It was originally owned by Irish owner Arthur Guinness Son & Co, which was founded in 1759 by the brand's founder, brewer Arthur Guinness.

Stages in the history of the Guinness brand on the market:

• In 1770, Arthur introduced the world to a dark English beer with a head called porter.
• In 1799, production of the intoxicating ale, which delighted lovers of hoppy drinks with its taste and aroma, was completed.
• In 1862, the company was awarded the harp of Brian Boru, King of Ireland, which became the Diageo logo.
• 1866 was a turning point, as the company became public. However, the controlling stake remained with the family.
• In 1932, the subsidiary Alexander Macfee was acquired.
• In 1935, Redd, Burke and Porter merged to form Export Bottlers Ltd.
• In 1936, the brewery was officially opened in London.
• In 1962, an African factory producing high-quality alcoholic beverages was established.
• In 1974, porter production was discontinued, but orders for stouts increased.
• In 1986, Guinness became the property of Distillers Company Limited.
• Since 1992, the Guinness family has been prohibited from directly participating in management.
• In 2014, the company opened a subsidiary in Dublin to produce beer products.

Grand Metropolitan

The British company Grand Metropolitan was a conglomerate in the leisure, real estate and manufacturing sectors. Stages of development:

• In 1934, the Mount Royal Metropolitan Association (MRMA) was founded.
• In 1957, Grand Hotels (Mayfair) Ltd. joined MRMA. Founder of the subsidiary Maxwell
• In 1961, the company was listed on the London Stock Exchange.
• In 1962, the name was changed to Grand Metropolitan Hotels Ltd.
• In 1972, the large breweries Truman, Hanbury, Buxton and Watney Mann were acquired.
• In the 1980s, the long-awaited acquisition of the Liggett Group and Heublein Inc. took place. This event elevated the company to the rank of the third largest producer of alcoholic beverages, including renowned wines.
• In 1988, Pillsbury was acquired as part of the food division. The portfolio was expanded with the following brands: Burger King, Green Giant and Häagen-Dazs.
• In 1997, the long-awaited merger with Guinness PLC took place, resulting in the creation of Diageo PLC.

Diageo

Stages of development:

• By 2000, the company had sold off its Burger King and Pillsbury restaurant chains, focusing on the production of premium alcoholic beverages.
• By 2001, the company had gradually expanded its spirits and wine divisions. By this time, Captain Morgan had become known around the world.
• In 2003, the company acquired a 50% stake in the production of Don Julio tequila. By 2015, this figure had risen to 100%, leading to an inevitable takeover.
• From 2011 to 2023, there was a gradual increase in brands: Mey Icki, Ypioca, Meta Abo, Shui Jing Fang, Hanoi, Peligroso, Casamigos, and Windsor.

Today, Diageo is one of the world's largest alcohol companies. It sells more than 200 brands that are in demand in 180 countries around the world.

Activities

Diageo is currently involved in the following areas:

1. It produces and distributes alcohol around the world. Its product range includes beer, rum, gin, vodka and whisky. Its most famous brands today are Johnnie Walker, Smirnoff, Guinness, Captain Morgan and Tanqueray.
2. Expanding its global distribution network by establishing strong relationships with wholesalers and retailers. Products can be purchased through both retail and wholesale channels.
3. Investing in the development of new product brands and conducting research to identify current demand.
4. Expands its position in research markets. Diageo company invests in India, Brazil and China.
5. Participates in social and environmental activities, introduces and supports relevant initiatives.
6. Operates a network of hospitality facilities, including whisky bars, brand centres and distilleries.

Diageo annual report and results

The company saw a decline in profitability only in 2020. At that time, revenue fell by 8.67%. In subsequent years, there was an increase in cash. Thus, in 2021, profitability grew by 18.06%, in 2022 by 42.46%, in 2023 by 3.99%, and in 2024 by 1.39%.

The company's income is clearly shown in the table:

Diageo brands

Diageo's main brands and their characteristics:

• Johnnie Walker. This Scotch whisky appeared on store shelves in 1820. It is one of the most popular brands among its peers.
• This Irish stout, produced since 1759, is distinguished by its refined taste and pleasant aroma.
• The most popular premium gin since 1830. Its recipe includes premium ingredients such as angelica root, coriander, juniper and liquorice.
• In 1974, Diageo liquor with a creamy taste appeared on the world market. It has a delicate taste with notes of cream, vanilla and cocoa.
• Since 1864, vodka has been filtered many times and undergoes triple distillation.
• Captain Morgan. This premium Caribbean rum has been on store shelves since 1982. Today, the brand is known and loved in more than 100 countries around the world.
• Crown Royal. Diageo alcohol was created as an unusual gift for the royal family. The result is an exquisite whisky that has won numerous awards.
• Don Julio. In 1942, Don Julio González produced the world's first tequila, which immediately received a luxury award.
• Ciroc. In 2003, high-quality grapes from French fields were used in vodka production. The result is an excellent quality alcoholic beverage with excellent characteristics.
• Diageo brands. These branded brandies are widely enjoyed for their tart taste and pleasant aftertaste.

Owners and management

As of 2024, Diageo plc's owners hold the following shares: Capital Research & Management Co – 5.34%, Massachusetts Financial Services Co – 5.02%, The Vanguard Group – 3.59%, BlackRock Investment Management (UK) Ltd – 3.26%, Norges Bank Investment Management – 2.60%.

According to information for 2025, institutional investors hold 2.82% of shares, insiders hold 0%, and retail investors hold 97.18%. The largest shareholder, Canoe Financial LP, holds 0.33% of shares.

According to the latest data, the management of Diageo plc consists of the following individuals:

• Chairman John Alexander Manzoni;
• Chief Executive Officer Debra Ann Crew;
• Chief Financial Officer Manik H. Jhangiani;
• Independent Non-Executive Director Valérie Chapoulaud-Floquet.

Diageo shares

Statistics on share prices over the years of the company's operation are shown in the table below:

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