Diageo

Why Diageo Is Seeking to Buy Jose Cuervo

Filed under: Spirits

By: David Kiley

United Kingdom drinks giant Diageo is believed to be considering a bid to buy the historic and iconic Jose Cuervo Tequila brand, the biggest Tequila brand and operation in the world, from the Beckmann family whose family tree traces to the original Antonio de Cuervo and a Mexican land grant from Spain in 1758 to start a blue agave farm.

Diageo already controls most of the distribution of Jose Cuervo. But media reports on both sides of the Atlantic say the beverage company, which also owns Guinness and a raft of other spirits brands, including Johnnie Walker Scotch Whisky, Tanqueray Gin and Crown Royal Canadian Whiskey, would pay perhaps $2 billion to own it outright.

The reason for Diageo's interest is open for speculation for now, since neither side is doing much talking. But Tequila consumption has been growing, though 84 percent of world consumption is still concentrated in Mexico and the U.S., according to Just-Drinks.

Tags: Diageo, Jose Cuervo, spirits, Tequila, The Beckmann Family

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Diageo Eyeing 100% of LVMH Drinks Business?

by David Kiley (RSS feed) —

Filed under: Apparel, Spirits

Diageo may want LVMH drinks.

Bain & Company, a U.S. retail consultant company, published a study recently that claims a surge in luxury sales of apparel, shoes, accessories, leather goods, and perfumes, despite the sluggish economy because, as Claudia D'Arpisio, a company spokesperson said, "The recovery has been faster than expected."

The company expects a 3 to 5 percent increase in luxury goods sales in 2011, and points out that the market for luxury goods is likely strongest with young males in China.

Headed by France's richest man, Bernard Arnault, LVMH deals in all sorts of luxury goods and the company recently took a 14% stake in Hermes. Analysts think that's only the start of a takeover bid.

Gallery: Diageo Eyeing LVMH Drinks Business?

Tags: 10 Cane, Belvedere, captain morgan, cognac, Diageo, Dom Perignon, glenmorangie, hennessey, Hermes, Krug, moet and chandon

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Diageo Inaugurates £40 Million Roseisle Mega-Distillery

by Noah Joseph (RSS feed) —

Filed under: Spirits

Some will lament it as the industrialization of scotch whisky production. Others will hail it as the answer to growing demand for scotch around the world. But whichever way you look at it, Diageo's enormous Roseisle distillery is now up and running.

Culling expertise from the 27 distilleries currently owned by the drinks consortium, Roseisle is the product of three years of construction. It cost Diageo £40 million to build, employs 25 workers and encompasses 3,000 square meters of space. On the premises Diageo expects to produce 10 million liters of whisky each year through fourteen new stills crafted by the coppersmiths at Abercrombie, Alloa.

The Speyside facility was built not to replace the individual distilleries under the Diageo umbrella, but to supplement them, in response to increased market demand which those distilleries have been struggling to meet. The spirits produced there will be used in Diageo's profile of blended whiskies, which include Johnnie Walker, J&B, Bell's and Black & White. No plans have been announced to ever bottle a single malt from Roseisle, but you never know what time may bring.

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Tags: bells, black white, diageo, distillery, jb, johnnie walker, roseisle, roseisle distillery, scotch, speyside, whisky

Spirits Giant Diageo Sees 10% Gains in Rebounding China Economy

by David Kiley (RSS feed) —

Filed under: Spirits

While sales of spirits are limping along in North America and Europe, the economic comeback in Asia, especially China, will fuel growth of about 10% for drinks giant Diageo in the next year, according to company officials. That's a big change from the 1% growth rate in the year ending June 2010.

The London-based drinks company, which owns brands such as Johnnie Walker, Guinness and Tanqueray, makes 10.4% of its group sales in its Asia Pacific region and earns just 6.4% of group profits there, but it is reinvesting heavily for growth, especially in China.

Chinese sales alone grew over 10% in the first six months of 2010 and the company expects the same in the year ending in June 2011.

Twenty-million new Chinese consumers reach legal drinking age in China each year, fueling growth for entry-level Western brands, as well as locally produced white spirits. But the rising middle class in China is also fueling demand for branded blended whiskies like Walker, as well as single-malts.

Johnnie Walker is the number-two scotch in China after Pernod Ricard's Chivas Regal, while it expects its recently introduced Canadian Whisky Windsor brand to be No 4 this year just behind Pernod's Ballantine's.

Tags: Ballantines whisky, Chinese consumers, Chivas Regal, diageo, johnnie walker, whisky, Windsor Whisky

Baileys Announces New Hazelnut Flavor

by Noah Joseph (RSS feed) —

Filed under: Spirits

If you think Baileys is Baileys, think again. In addition to the original version, the popular liqueur brand currently offers three different flavors – Creme Caramel, Mint Chocolate and Coffee – and is preparing to roll out a fourth in time for the approaching holiday season.

Baileys Hazelnut flavor will hit shelves at travel retail locations across Europe on November 1, spreading to other markets and retailers in the new year.

The Diageo-owned brand is the top-selling Irish cream liqueur in the world. Its next closest competitor, Carolans, was recently acquired by Campari.

Tags: baileys, baileys hazelnut, diageo, hazelnut, irish cream

Gleneagles: Where Familes Can Experience Scottish Outdoor Pursuits

by Carrie Coolidge (RSS feed) —

Filed under: Luxury Travel & Hotels, Sports

Scottish Pursuits at Gleneagle Hotel in Scotland

When the Gleneagles Hotel opened in 1924, it was described as 'a Riviera in the Highlands' and 'the eighth wonder of the world'. Then as now, the Gleneagles Hotel was the glorious playground for people dedicated to leisure and pleasure in the most luxurious surroundings. Nearly ninety years later, Gleneagles, which is still considered one of the world's most coveted five star resorts, is nominated for a Luxist Award for Best Family Luxury Summer Vacation.

Built by the former Caledonian Railway Company (and complete with its own railway station), the resort has long been a fixed part of high society's calendar. During the 1950's, after the London "season", the elite went to Gleneagles for grouse shooting.
The hotel was only opened during the summer months until the early 1980's when a total renovation and restoration program was initiated. Since then, a total capital investment of more than £46 million has made it possible to enjoy the elegance and traditions of Gleneagles all year round.

Gallery: Country Pursuits in Scotland at Gleneagles

Tags: archery, awards-main, best luxury family summer destination, Diageo, Falconry, fishing, gleneagles, Gleneagles Hotel, golf, golf resort, horseback riding, luxist-awards, Scotland, shooting

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Will Diageo's Defection Damage Bordeaux?

by Deidre Woollard (RSS feed) —

Filed under: Wine

The story of Bordeaux's fortunes only seems to get worse over time. The most expensive and prestigious wine has taken hit after hit in the global crisis. Now there are rumblings of a move that could put the future of Bordeaux at serious risk. Global drinks giant Diageo has a division, Diageo Chateau & Estates that dominates much of the sale of wine in Bordeaux. According to a story in the Napa Valley Register says that Chateau & Estates has been selling off a lot of its Bordeaux inventory. The total value of the wine that it holds could be in the $200 million range and the repercussions of the sales could include a deep drop in the prices of Bordeaux. Lower prices could spark consumer interest in the short term but draw down the prestige of Bordeaux over time. The AFP also reports that the news is bad for other wine dealers who have stockpiled vintages of Bordeaux as an investment. As the prices fall, these retailers are struggling with potentially taking a loss on their wines.

At this point Bordeaux has pinned its hope on Asia where there has been a surge of interest in French wine, especially the prestigious first growth Bordeaux. As my colleague Tom Johansmeyer recently reported, wine is selling well at auctions in Hong Kong. The reportedly excellent 2009 vintage can also help boost the reputation of Bordeaux as long as there are still people interested in buying.

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Tags: bordeaux, diageo, french wine, FrenchWine, wine

Johnnie Walker's Descendant Calls on Diageo to Keep Plant Open

by Noah Joseph (RSS feed) —

Filed under: Spirits

The last surviving descendant of Johnnie Walker is facing off with the international beverage consortium that owns the brand today over the closure of the eponymous whisky brand's historic distillery in Scotland. Diageo, which owns the Johnnie Walker brand, recently announced the closure of the facility at Kilmarnock, Scotland, as part of a comprehensive restructuring plan to help the company weather the economic storm. The closure of the Kilmarnock facility is expected to cost some 700 workers their jobs. But Betty Heath, 77, the great grand-daughter of the Johnnie Walker himself, has vowed to do all she can to help save those jobs.

"As I am the only surviving direct ancestor," pledged Heath, "I will fight in his name to do all I can to keep Johnnie Walker in Kilmarnock and to help save those workers' livelihoods." She called for a meeting with Diageo executives to discuss the matter, and while she may hold no control over her ancestor's namesake company, her involvement could prove enough of a public relations disaster for the beverage concern to pressure them to reconsider.

[Source: Scottish Daily Record]

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Tags: betty heath, BettyHeath, diageo, johnnie walker, JohnnieWalker, scotch, scotch whisky, ScotchWhisky, scotland, whisky

The John Walker Launched In Singapore

by Deidre Woollard (RSS feed) —

Filed under: Spirits

Last Friday Diageo showed off the first bottle of The John Walker, the new whisky blend in the Johnnie Walker portfolio. The whisky will sell for $3,000 duty free making it the highest priced line in Diageo's entire drinks portfolio. The new blend was created from a small number of rare and exclusive whiskies taken from distilleries that operated in the 1800s during John Walker's lifetime. Singapore received five bottles ahead of the blend's official launch in September 2009.

The first bottle is signed by Master Blender Jim Beveridge and is being auctioned in partnership with travel retailer DFS at Changi Airport to raise money for The Smile Train, the non-profit charity of choice for DFS. The retailer plans to match the amount raised. The Moodie Report has pictures and video of the unveiling.

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Tags: diageo, scotch, singapore, the john walker, TheJohnWalker, whisky

Diageo Restructures, Cuts Jobs

by Deidre Woollard (RSS feed) —

Filed under: Spirits

Last week I mentioned a production slowdown at a Johnnie Walker factory but it looks like the cost cutting at drinks giant Diageo is far more widespread. Diageo has announced that after a "global review" it will institute a reorganization that will cost 150 employees in North America their jobs. The changes will take place next month. To cut costs Diageo will merge its beer and wine organizations, Diageo-Guinness USA (DGUSA) and Diageo Chateau & Estate Wines (DC&E) into a "total beverage alcohol approach" according to an article in Wine Business. The jobs lost make up four percent of Diageo's 3,700-person North American work force.

Diageo is the company behind many of the most popular brands including Guinness, Johnnie Walker, Bailey's Irish Cream and Ciroc vodka (shown with celebrity spokesman Sean Coombs above). Liquor is traditionally one of the safe havens during a recession as people enjoy their liquor as much, if not more, in a down market.

Tags: ciroc, diageo, johnnie walker, JohnnieWalker, liquor

World's Largest Whisky Collection To Go On Display

by Deidre Woollard (RSS feed) —

Filed under: Spirits

Brazilian collector, Claive Vidiz has brought the world's largest collection of whiskies back to Scotland. The collection numbers 3,384 bottles, and took Mr. Vidiz over 35 years to assemble. Now the collection has been bought spirits maker Diageo which has in turn loaned the collection to the Scotch Whisky Experience on the Royal Mile next year. The bottles are currently stored in a high security location in Scotland, after making the 6,500 mile journey from Sao Paulo on a container ship. At the Scotch Whisky Experience, a museum, shop and restaurant next to Edinburgh castle, the whiskies will be displayed in a custom made vault. BBC News quotes Mr. Vadiz as being very happy that his entire collection has found a home without having to be split up.

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Tags: diageo, scotch, scotland, whisky

Diddy Does Vodka

by Sandy Maple (RSS feed) —

Filed under: Spirits

Don't call Sean "Diddy" Combs a celebrity endorser. He prefers the term "luxury brand builder" and his latest endeavor involves some high-end vodka. He has just signed a multiyear deal to develop Diageo PLC's superpremium Ciroc vodka. And he isn't just putting his name behind the bottle. Combs plans to be very involved in all aspects of the development, focusing on attracting the "movers and shakers" of the vodka drinking world. "They're looking for something that tastes like their lifestyle," he said. "It's that trendsetter, that hipster, someone who's looking for luxury and looking for something better." If all goes well, Comb's 50-50 share of the profits could ultimately net him more than $100 million.

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Tags: celebrity vodka, CelebrityVodka, ciroc vodka, CirocVodka, diageo, diddy, p diddy, PDiddy, sean combs, SeanCombs, vodka

Oronoco Rum

by Deidre Woollard (RSS feed) —

Filed under: Spirits

The new rum from Diageo, Oronoco Rum sure has snazzy packaging. The rum is made from Brazilian mountain cane and comes in stylish bottle with a recycled leather wrap. The rum is triple distilled by column and copper pot stills and blended with aged South American rums. It is aged in Brazilian amendoim wood casks to round out the flavor. The bottles are batch numbered and sell for around $35.

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Tags: alcohol, diageo, liquor, oronoco rum, rum, spirits