Diageo to sell 19 lower-end spirits brands to Sazerac for $550 mn

Diageo India, one of the country’s leading alcohol beverage company, has announced their launch of Godawan Estuary Premium Water, in collaboration with Estuary Water. 

The water will be available across all major outlets of Indian markets later this year. 

In line with Diageo India’s vision of crafting elevated experiences, Godawan Estuary Premium Water represents a new chapter in the brand’s journey toward offering high-quality lifestyle choices. The launch, in partnership with the Indian start-up Estuary, introduces water thoughtfully developed and designed to meet the exacting standards of discerning consumers. 

This collaboration embodies a shared commitment to sophistication and precision, offering an exceptional accompaniment to every experience without altering their integrity.

Vikram Damodaran, Chief Innovation Officer of Diageo India, said “It is our belief that even the simplest pleasures can be elevated through craftsmanship and care. This collaboration with Estuary Water represents a meeting of shared values; one that reflects the artistry and passion behind everything we do.” 

Adding to this, Devasish Kamdar, Founder of Estuary Blending Water, said “Godawan Estuary Premium Water specially formulated in Scotland is a new category created for epicureans around the globe to enhance their moments. We look forward to this becoming the go to for all luxurious occasions and as we say - elevate your experiences with Estuary.”

Godawan Estuary Premium Water will be available across leading e-commerce platforms and retail outlets in India starting in December 2024. The brand will also host a luxury craft experience at Nahargarh Palace in Ranthambore at the end of the year. This exclusive three-day getaway will offer guests the opportunity to immerse themselves in modern luxury, with a focus on purposeful engagement and curated experiences.
 

United Spirits Ltd, a liquor manufacturer controlled by Diageo, announced a significant 63.5% increase in its consolidated net profit, reaching Rs 350.2 crore for the third quarter concluding in December 2023.

This marks a substantial rise from the Rs 214.2 crore net profit recorded in the corresponding October-December quarter of the previous year, as per the regulatory filing by United Spirits Ltd (USL).

The company's revenue from operations witnessed a 5.32% increase, reaching Rs 6,962.0 crore in the reviewed quarter. In comparison, it stood at Rs 6,609.8 crore during the same period in the preceding fiscal year.

The increase in sales was attributed to the ongoing emphasis on premiumization and the sustained demand from resilient consumers, as stated in the earnings report by USL.

During the December quarter, United Spirits Ltd (USL) saw a marginal 3.6% increase in total expenses, reaching Rs 6,554.7 crore.

USL's overall revenue, encompassing brands such as McDowell's, Royal Challenge, Signature, Johnnie Walker, and Black Dog, saw a growth of 5.77%, reaching Rs 7,014.1 crore.

Hina Nagarajan, the CEO and MD of USL, stated "Despite a challenging macro environment, we have achieved a resilient quarter. Although the demand momentum in the sequential period was somewhat subdued, it is noteworthy that the premiumization trend persists."

The company maintained strong consumer engagement during a series of festivals, the cricket World Cup, and the peak wedding season. The emphasis on ongoing enhancement and efficiency in the value chain is evident in the company's performance, she stated.

Regarding the future prospects, Nagarajan expressed, "As we look forward, we maintain a prudent optimism about growth, supported by consistent investments in our brands, confidence in our innovation and renovation initiatives, and the enduring potential of the Indian consumer over the long term."

United Spirits Ltd shares concluded at Rs 1,107.85 each on the BSE, marking a marginal 0.07% decrease from the previous closing value.

Ivan Menezes, the CEO of Diageo, the largest spirits maker globally, has sadly passed away at 63 in London, England.

His death occurred shortly after being hospitalized for treatment, following a brief illness.

Menezes experienced a "significant setback" over the weekend due to complications, as stated by Diageo. Diageo, renowned for producing popular alcoholic brands such as Guinness, Smirnoff, Gordon's gin, and Johnnie Walker whisky, issued this statement.

On Monday, the company made an announcement stating that Debra Crew, the CEO-designate, would take on the role of CEO on an interim basis, while Menezes continued to receive treatment.

Menezes played a crucial role in fostering growth at Diageo and skillfully guided the company through numerous successful acquisitions.

Following the impact of the COVID-19 pandemic on the hospitality industry, Menezes spearheaded a remarkable recovery effort that resulted in Diageo's net sales value surpassing the 2019 figures by an impressive 36 percent.

Under Menezes' leadership, Diageo emerged as a dominant force, accounting for around 10 percent of the total food and beverage exports of the United Kingdom, as per the company's evaluations.

Recognizing his contributions to business and equality, Menezes was knighted earlier this year in the inaugural New Year's honours list by KingCharles III.

Diageo PLC announced on Tuesday that Ivan Menezes, who has served as the company's Chief Executive for nearly a decade, will retire from his position. Debra Crew, who currently holds the role of Chief Operating Officer, will take over as the new Chief Executive.

Diageo, a company based in London and known for producing popular alcoholic beverages such as Johnnie Walker Scotch whisky, Guinness stout, and Smirnoff vodka, stated that Ivan Menezes will step down from the board on June 30, while Debra Crew will become a member of the board starting from July 1.

Ivan Menezes is acknowledged for his significant contribution in growing the business of Diageo since he assumed the position of CEO in July 2013.

Under his leadership, Diageo expanded its portfolio to include approximately 200 brands and has established a presence in more than 180 markets around the world.

Javier Ferran, the Chairman of Diageo, expressed his gratitude towards Ivan Menezes for his valuable contribution to the company over the last ten years. Ferran credited Menezes for his role in transforming Diageo's global presence, brand portfolio, and strategic direction, which have enabled the company to become a prominent player in the premium drinks market.

Ivan Menezes became a part of Diageo through the merger of Guinness PLC and Grand Metropolitan PLC in 1997. He has held various senior positions within the company since then, and was appointed as the CEO in July 2013.

According to the company, Debra Crew, who has been the Chief Operating Officer of Diageo since October 2022, has previously held senior leadership positions within the organization, including President of Diageo North America and Global Supply divisions. Before joining Diageo, she was the President and CEO of Reynolds American, Inc., and had also served in other executive roles.

In a note, RBC Capital Markets analysts James Jones and Emma Letheren stated that although Ivan Menezes' retirement was expected, it is still a loss for Diageo given his successful tenure. They noted that under Menezes' leadership, Diageo transformed into an impressive company from a less favorable position.

The analysts also mentioned that Debra Crew has a strong background in consumer staples, but as a relatively new addition to the leadership team, her potential impact on the company's future is yet to be determined.

Copper Dog Whisky, a golden liquid that encompasses the brazen ideas of Speyside launches in India with an aim to revolutionize the consumption of single malts in the new year.

Made with the purest blend of the eight single malt whiskies, this unadulterated drinking pleasure from Diageo India is here to capture real conversations in 2021.

Also Read: Scotch whisky reported double digit growth in 2018, says IWSR Report

Born out of the warm and mischievous atmosphere of the Copper Dog pub in the Craigellachie Hotel, Speyside, the liquid is a creation of a group of collaborators, connected by the original instigator Piers Adams, an entrepreneur and founder of some of the world’s most influential bars and clubs, including London’s Mahiki and Whisky Mist.

“We are happy to introduce Copper Dog in India, as a valuable new addition to our portfolio which is one of the finest blended malts scotch whisky, created in Scotland. It is a young liquid that exudes its own rugged style and perfectly personifies the kind of innovation we want to create for the new-age times,” shared Abhishek Shahabadi, VP and Portfolio Head, Premium & Luxury Brands at ‎Diageo India.

May Interest: Diageo’s stake raises to 55.9% in United Spirits

The liquid has attained a global ranking as it was awarded Double Gold at the San Francisco World Spirits Competition 2020. This prestigious ranking is awarded to those who receive a gold medal rating by all members of the judging panel.

Global leader in beverage and alcohol Diageo has pledged to donate neutral spirit - a 96% strength ethyl alcohol used primarily in production of alcohol beverages, in support of efforts in Southeast Asia to tackle the challenge of COVID-19.

Governments and communities in Southeast Asia, like the rest of the world, are racing against time to stop the spread of COVID-19. As these efforts enter a critical phase, medical supplies and equipment continue to be in short supply in public institutions like healthcare facilities and schools.

Diageo Southeast Asia will donate 60, 000 litres of neutral spirit and make it available at no cost to governments and local manufacturers in the Philippines, Vietnam and Myanmar, to help overcome shortages in their healthcare systems.

"As Southeast Asia steps up its efforts to stop the tide of infections, Diageo hopes to do what we can to help communities here and assist in the disinfection of hospitals and other environments to help keep our invaluable front-line workers safe across Southeast Asia,” shared Apurvi Sheth, Managing Director, Southeast Asia, Diageo.

This initiative is estimated to support the cleaning and disinfection needs of public healthcare institutions, catering to vulnerable and at-risk groups in local communities.

Tran Bao Minh, General Manager of Diageo Vietnam adds "We stand ready to support the Vietnamese people and contribute to efforts to help medical workers who are at the front line in the battle against COVID-19."

This latest effort follows Diageo's earlier global announcement on 23 March 2020 regarding its pledge to donate Grain Neutral Spirit to the UK, Ireland, Italy, the USA, Brazil, Kenya, India and Australia, enabling the creation of eight million hand sanitisers for frontline medical workers in countries where Diageo has major distilling operations.

"Alcohol sanitizers have been identified as a key tool in the fight against COVID-19 and during these challenging times, we want to do what we can for our communities. In the Philippines and elsewhere with Diageo, we believe that we are always stronger together,” added Diageo Philippines General Manager Kavita Hans.

British multinational alcoholic beverages companyDiageo has bought shares worth about Rs 352 crore or 0.7 per cent in United Spirits.

With this its total stake in India's largest liquor firm raises to 55.9 percent.

The maker of Johnnie Walker and Smirnoff purchased 50.75 lakh shares at Rs 693.25 per share on the National Stock Exchange.

"India remains one of the most exciting growth markets in the world for total beverage alcohol. This transaction forms part of Diageo’s long-term strategy of premiumisation within the market," read a Diageo statement.

Diageo first acquired a controlling stake in USL in 2014 to cash in the world's biggest whiskey market where USL is by far the market leader.

USL has more than 100 brands such as McDowell whiskey but has been increasing pushing premium products such as Johnnie Walker and Black & White. Since the British spirits giant acquired USL more than five years ago, premium segment sales has gone up from around 45 per cent-50 per cent in 2014 to over two-thirds to its overall sales now.

Diageo's overall net sales in India grew 2 per cent but prestige and above segment, where it competes with the French rival Pernod Ricard, went up 5.1 per cent during quarter ended December.

Diageo, the world’s largest spirits company, has acquired a majority stake in distilled non-alcoholic spirits brand Seedlip. With this, the maker of Johnnie Walker whisky and Tanqueray gin is catering to a growing population of teetotalers.

The company bought a 20% stake in Seedlip in 2016 through its venture capital arm Distill Ventures, which invests in small businesses it believes have the potential to make a splash in the industry.

So far, Distill Ventures has invested over 60 million pounds in about 15 drinks brands.

The deal comes at a time when the teetotalling trend has emerged in Great Britain, which means that a growing proportion of young drinkers claim to abstain from drinking alcohol. In Great Britain, Teetotalism rose to 22% in 2017 from 19% in 2005 for those aged between 16 and 24 years.

Seedlip was founded by Ben Branson in three spice variants. The brand has a presence in more than 25 countries, including the UK, Australia and the United States.

Diageo has expanded its Smirnoff vodka portfolio in the UK by launching a new spirit infused with fruit essence and natural ingredients.

Smirnoff Infusions are made with Smirnoff No.21 Vodka. It is available in two flavours, including orange, grapefruit and bitters; and raspberry, rhubarb and vanilla.

Sarah Shimmons, Marketing Manager for Europe, Smirnoff, said, “Nightlife is evolving and more people are socialising at earlier times of the day to spend quality time together. Alongside this is the rise in popularity of the spritz, which has now become a summer staple.”

“Smirnoff Infusions taps into the growing demand from consumers for great-tasting drinks with a real depth of flavour. The process sees real fruits infused and distilled individually for the perfect amount of time to allow their natural flavours to be extracted. This ensures the optimal balance of natural and fruity flavours at the heart of the liquid, with good spirit cut-through,” Shimmons further stated.

Earlier, Diageo had released Smirnoff Zero Sugar Infusions. It is a sugar-free, lower-ABV range available in three flavours, including cucumber and lime, watermelon and mint, and strawberry and rose.

Diageo, the British multinational alcoholic beverage company, will remove plastic packaging from multipacks of its beer brands, including Guinness, Harp, and Smithwick’s.

The cardboard, which is 100% recyclable and biodegradable and is sustainably sourced, will replace the plastic ring carriers and shrink wrap.

This positive initiative that will cost Diageo 16 million pounds will be rolled out in phases. From August 2019, these new beer packs will be available in Ireland. It will further be made available in other international locations by the summer of 2020.

David Cutter, Chief Sustainability Officer and President, Global Supply and Procurement, Diageo, said, “Consumers expect our packs to look beautiful, be functional, and sustainable. I am proud to announce this investment, through which we have been able to combine all three.”

“We have been working tirelessly to make our packaging more environmentally friendly and I’m thrilled with this outcome for Guinness and our other global beer brands,” he added.

भारत की सबसे बड़ी शराब बनाने वाली कंपनी और ब्रिटिश स्प्रिट्स बनाने वाली कंपनी डियाजियो पीएलसी की इकाई यूनाइटेड स्प्रिट्स लिमिटेड ने बेंगलुरु स्थित सहायक कंपनी फोर सीज़न वाइन्स को बेच दिया है। यूनाइटेड स्प्रिट्स लिमिटेड ने अपनी ये कंपनी ग्रोवर जाम्पा वाइनयार्ड्स को 31.86 करोड़ में बेची है।

यूनाइटेड स्प्रिट्स लिमिटेड ने एक नियमक फाइलिंग में कहा है, 'कंपनी ने पूर्ण स्वामित्व वाली फोर सीज़न्स वाइन्स में इससे जुड़े ब्रांडों के साथ सौ प्रतिशत की हिस्सेदारी बेचने के लिए शेयर खरीदने का समझौता किया है।'

डियाजियो इंडिया के एग्जिक्यूटिव डायरेक्टर और चीफ फाइनेंशियल ऑफिसर संजीव चूरीवाला ने कहा, 'यह सौदा हमें संरचनात्मक बुद्धिमता और भारत के व्यापार के सरलीकरण के करीब लाता है।'

उन्होंने आगे कहा कि फोर सीजन्स वाइन्स बिजनेस एक किनारा है लेकिन समग्र डियाजियो इंडिया पोर्टफोलियो का एक छोटा सा हिस्सा और बिक्री हमें प्रीमियम रणनीति पर ध्यान केंद्रित करने और भारत में हमारे मूल आत्माओं के बिजनेस का विकास करने में मदद करेगी।

2006 में स्थापित हुए फोर सीज़न वाइन्स, फोर सीज़न और ज़िन्ज़ी के तहत महाराष्ट्र की साह्याद्री घाटी के पास उगाए हुए अंगूर से रेड, व्हाइट और गुलाब की वाइन्स बनाती है।

United Spirits Limited (USL), India’s biggest liquor maker and a unit of British spirits maker Diageo Plc, has sold its Bengaluru-based subsidiary Four Seasons Wines Ltd to Grover Zampa Vineyards Ltd and Quintela Assets Ltd. The wine unit has been sold for Rs 31.86 crore.

United Spirits Limited said in a regulatory filing, "The company has entered an agreement for the sale of all the equity shares held by the company constituting 100 per cent of the paid up equity share capital of its wholly-owned subsidiary, Four Seasons Wines (FSWL), along with the brands." 

Sanjeev Churiwala, Executive Director and Chief Financial Officer, Diageo India, stated, "This deal brings us a step closer to the structural rationalisation and simplification of our India business."

"The Four Seasons Wines business is a niche but a small part of the overall Diageo India portfolio and the sale will enable us to focus on our premiumisation strategy and grow our core spirits business in India," he added.

Established in 2006, Four Seasons Wines produces red, white and rose wines from grapes grown around Sahyadri valley in Maharashtra under brands Four Seasons and Zinzi.

Diageo, the British alcoholic beverages company, will sell 30,000 sq ft of prime office space in the UB Tower to DivyaSree Group in Bengaluru. The deal is pegged at Rs 28,000 per sq ft.

Diageo, which bought a controlling stake in Vijay Mallya's United Spirits Limited (USL), will sell and lease back the space to operate its office from the same premises after the transaction. 

People aware of the deal said, "Diageo is in discussion with a Bangalore-based investor and is in the final stages of the deal closure. It can either be an entity level transaction or bought by an individual." 

A spokesperson from USL said, "This move is in line with our strategy to monetise non-core assets. Diageo Plc’s India arm owns five floors in UB tower and will only sell four floors as part of the assets disposal plan."

"The UB space is a premium office building in Bangalore and as part of the settlement with the UB Group in 2016, the spirits maker received real estate that it is now selling to unlock value," people further stated. 

डाऐगो, एक अल्को-बेवरेज कंपनी, जो स्कॉच व्हिस्की ब्रांड, जॉनी वाकर के लिए भारत में सबसे बड़े ब्रांड अभियानों में से एक ला रही है। 'कीप वॉकिंग' अभियान 'मिशन मंगल: कीप वॉकिंग भारत'  नामक 20 मिनट की लघु फिल्म के साथ भारत के सफल मंगल मिशन का जश्न मना रहा है।

यह 20 सितंबर को लॉन्च की जाएगी। यह फ़िल्म, अभिनेता इमरान खान द्वारा लिखी और निर्देशित की गई है। यह करण जौहर के धर्मा प्रोडक्शंस की एक उत्पादन शाखा धर्म 2.0 द्वारा बनाई गई है।

लघु फिल्म का 60-सेकंड का ट्रेलर कंपनी द्वारा जारी किया गया है। यह पहली बार है, जब डाऐगो इस अभियान को भारत ला रहा है।

यह अभियान कई चैनलों पर शुरू किया जाएगा, जिसमें टीवी, डिजिटल, आउट-ऑफ-होम, मॉल और हवाई अड्डे शामिल हैं।

डाएगो इंडिया के वाईस प्रेसिडेंट, (विपणन) अभिषेक शाहबादी ने कहा, "जॉनी वॉकर-द जर्नी का पहले भारत अभियान के रूप में, हम प्रगति की इस प्रेरणादायक कहानी को बताने में सक्षम होने के लिए बेहद उत्साहित हैं, जो सभी भारतीयों में अत्यधिक गर्व की बात है। 'मिशन मंगल : कीप वॉकिंग भारत' मानव भावना में जीवन की सकारात्मकता लाता है और दिखाता है कि कैसे आशा और आशावाद लोगों को बेहतर भविष्य के लिए एक साथ जुड़ने के लिए प्रेरित कर सकता है।"

इमरान खान ने कहा, "मैं हमेशा से जब भी मौका मिले, तब निर्देशन और अभिनय करते रहना चाहता था। इसलिए जब पुनीत मल्होत्रा ​​(धर्मा 2.0 के निर्माता) ने मुझसे पूछा कि क्या मैं इस प्रोजेक्ट को निर्देशित करना चाहता हूं, तब मुझे पता था कि मैं ऐसा ही कुछ करना चाहता था। मुझे पता था कि मैं कहानी को सही ढंग से कर पाऊंगा। मिशन मंगल ने हम सभी को बहुत गर्व महसूस कराया है और मैंने उन सभी लोगों की भावना को समाहित करने की कोशिश की है, जिन्होंने इस उपलब्धि को संभव बनाया है।"

Diageo, an alco-beverage company, brings one of the largest brand campaigns in India for Johnnie Walker, its Scotch whisky brand. The ‘Keep Walking’ campaign is celebrating India’s successful Mars mission with a 20-minute short film, named ‘Mission Mars: Keep Walking India’.

Scheduled to be launched on September 20, the firm is written and directed by actor Imran Khan. It is produced by Dharma 2.0, a production arm of Karan Johar’s Dharma Productions.

A 60-second trailer of the short film has been released by the company. This is the first time when Diageo is bringing the campaign to India.

The campaign will be initiated over multiple channels, which includes TV, digital, out-of-home, malls and airports. 

Abhishek Shahabadi, Vice President (Marketing) at Diageo India, said, "As Johnnie Walker–The Journey’s first India campaign, we are extremely excited to be able to tell this inspiring story of progress which builds immense pride among all Indians. ‘Mission Mars: Keep Walking India’ brings to life positivity of the human spirit and shows how hope and optimism can motivate people to come together for a better future."

Imran Khan stated, "I always wanted to direct and acting happened by chance. So, when Puneet Malhotra (Producer of Dharma 2.0) asked me if I would like to direct this project, I knew I wanted to do this. I knew that I will be able to do full justice to the story. Mission Mars has made all of us so proud, and I've tried to encapsulate the spirit of all those who made this achievement possible."

In an attempt to attract more women towards famous whiskey brand and acknowledge gender equality, the limited US based Whiskey brand Johnnie Walker is rolling out a female version of its iconic logo Johnnie Walker.

The new label will carry the title Jane Walker with a striding woman printed over it.

Stephanie Jacoby, VP of Johnnie Walker said the Brand owner Diageo is hoping the move widens the appeal of the product while celebrating women.

Jocoby in an Interview said, “Scotch as a category is seen as particularly intimidating by women. It’s a really exciting opportunity to invite women into the brand.”

Diageo isn’t alone in putting a female face on a traditionally male mascot. KFC, the fried-chicken chain run by Yum! Brands, tapped country singer Reba McEntire in January to appear as Colonel Sanders in its latest marketing campaign.

According to the US Distilled Spirits Council, the launch is the latest part of the brand’s “Keep Walking America” push, which began in 2016. The campaign is an attempt to speak to a broader audience, with ads spotlighting Latinos and veterans. Scotch whisky volumes grew just over 2% between 2002 and 2017 in the US. And Johnnie Walker has outpaced many competitors, growing 18% in 2017, boosted by a revival of cocktail culture.

United Spirits Ltd is planning to scale back its more than 150 brands and focus on the faster-growing top end, hoping to bolster its fortunes in a market dominated by cheaper, local names.

“The maker of Johnnie Walker whisky expects growth in top-end spirits to outpace the mass market over the next few years, as a growing class of wealthy young professionals demands better quality,” shared Anand Kripalu, chief executive of the unit of Britain's Diageo Plc, reported Reuters.

The group is planning to focus and promote around top 15 top brands and will de-emphasise or consolidate others.

Whisky-swigging India, where alcohol was frowned on until only recently for religious and cultural reasons, is now a battleground for global drinks makers, as groups like Diageo and rival Pernod Ricard SA tap emerging markets to offset sluggish growth in the developed world.

It is now Diageo's second-largest market by sales.

"Awareness, certainly, for premium brands is going up and affordability is going up," Kripalu told Reuters.

"We are focussing on select brands, which we believe are the critical ones, big drivers of growth," he said, adding only those brands would receive strategic investment.

India's alcoholic beverages market remains small compared with other large economies such as China and the United States. But drinks makers are betting on rapid urbanisation, a young population and a fast-growing middle class.

As India grows, Kripalu, a consumer goods industry veteran who joined the company two years ago, expects his company's contribution to Diageo's revenue going up in the coming years from about 9 percent now, but did not give a target.

"Our aim is certainly to grow faster than Diageo is growing globally, therefore our contribution will keep going up," he said. "I do see us becoming a significant growth driver to Diageo globally."