bution of Smirnoff is managed by Casa Cuervo SA, while all other brands are sold directly by the company, either through direct sales to international accounts or through wholesalers and distributors. The company’s strategy in Mexico is to grow the scotch category where it is the clear leader, drive premiumisation, and widen the reach to middle class consumers by expanding the portfolio through innovation and through increasing use of on trade platforms and customer partnerships. In selected markets in West LAC, the company manages sales ourselves, while in key markets, such as Costa Rica and the Dominican Republic, it uses exclusive distributors. In Jamaica, the company owns a 58% controlling interest in Desnoes & Geddes Limited, the Jamaican brewer of Red Stripe lager. In Argentina, it sells directly to major grocers, and other businesses are managed through a combination of wholesalers and distributors outside of major grocers, to whom it sells directly. ASIA PACIFIC The company’s strategy in the Asia Pacific, which encompasses both developed and emerging markets, is to operate across categories with participation in international spirits, local spirits and beer. Its strategy focuses on the highest growth categories and consumer opportunities, driving continued development of super and ultra premium scotch, and leveraging the emerging middle class opportunity through a combination of organic growth and selective acquisitions. The company manages a Singapore based key accounts business. The company has wholly-owned subsidiaries in the Philippines and Vietnam. In Vietnam, the company also has a 45.56% equity stake in Hanoi Liquor Joint Stock Company. In Malaysia, the company’s own and third-party beers are brewed and distributed by a listed company, Guinness Anchor Berhad, in which it has an effective 25.5% equity interest. The company is the sole distributor of Shui Jing Fang, a super premium Chinese white spirit, through its controlling 39.71% equity stake in a listed company. In India, it has its own distribution company for its international spirits brands. In 2014, the company expanded its route to market through a sales promotion agreement with United Spirits Limited (USL), the spirits company in India. In Australia, the company owns production, distillation and distribution companies. In New Zealand, it operates through third-party distributors. In North Asia, the company has its own distribution company in Korea, whilst in Japan, the majority of sales are through joint venture agreements with Moët Hennessy and Kirin. In the Middle East, the company sells its products through third-party distributors. Competition In spirits, the company’s major global competitors are Pernod Ricard, Beam Suntory, Bacardi and Brown Forman, each of which has various brands that compete directly with its brands. In beer, the company competes globally, as well as on a regional and local basis (with the profile varying between regions) with various competitors, including AB InBev, Heineken, SABMiller, Molson Coors, and Carlsberg. Research and development For the year ended 30 June 2014, the company’s research and development expenditure amounted to £24 million. History DIAGEO plc was founded in 1886. The company was incorporated as Arthur Guinness Son and Company Limited in 1886.
diageo plc (DGEAF:OTC US)
London, NW10 7HQ
Phone: 44 20 8978 6000
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