Diageo

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Diageo plc (LSE: [DGE], NYSE: [DEO]) is the largest multinational beer, wine and spirits company in the world. The company was formed in 1997 from the merger of Guinness plc and Grand Metropolitan plc and is listed on the London Stock Exchange.

The product portfolios of Guinness and GrandMet were largely complementary, with little overlap.

Diageo is the holding company for some of the leading international alcoholic beverage brands such as Guinness, Smirnoff, Captain Morgan, Gordon's, Crown Royal, Bulleit Bourbon, J&B, Seagram 7 Crown, VO, Bells, Archers, Pimm's, Johnnie Walker, Tanqueray, Don Julio, Baileys, Sterling Vineyards, Beaulieu Vineyard, George Dickel and Bushmills. Diageo also operates the Scottish whisky distilleries of Blair Athol, Caol Ila, Cardow, Clynelish, Cragganmore, Dalwhinnie, Glenkinchie, Glen Ord, Lagavulin, Oban, Royal Lochnagar and Talisker. Diageo also distributes Jose Cuervo products.

In 2002, Diageo sold the Burger King fast food restaurant chain to a consortium led by the US firm Texas Pacific for $1.5 billion. Diageo also owned Pillsbury until 2000 when it was 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.^{[[Citing sources citation needed]]}

As of 2006, the brand of Cardhu has quietly changed back to being a single malt again[link].

Corporate governance

Current members of the board of directors of Diageo are: James Blyth, Clive Hollick, Franz Humer, Maria Lilja, Nick Rose, William Shanahan, Todd Stitzer, Jon Symonds, Paul Walker, and Paul Walsh.

External links

[www.diageo.com] Official website
[www.diageobrands.com] A Diageo website detailing their brands. (Confirmation of age and location required).

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