diageo plc - · pdf filediageo plc company profile publication date: 28 may 2008 ...

Download Diageo plc -   · PDF fileDiageo plc Company Profile Publication Date: 28 May 2008   Datamonitor USA Datamonitor Europe Datamonitor Germany Datamonitor Hong Kong

If you can't read please download the document

Upload: duongtruc

Post on 09-Feb-2018

219 views

Category:

Documents


0 download

TRANSCRIPT

  • Diageo plc

    Company Profile

    Publication Date: 28 May 2008

    www.datamonitor.com

    Datamonitor Hong KongDatamonitor GermanyDatamonitor EuropeDatamonitor USA2802-2803 Admiralty CentreKastor & PolluxCharles House245 5th AvenueTower 1Platz der Einheit 1108-110 Finchley Road4th Floor18 Harcourt Road60327 FrankfurtLondon NW3 5JJNew York, NY 10016Hong KongDeutschlandUnited KingdomUSA

    t:+852 2520 1177t:+49 69 9754 4517t:+44 20 7675 7000t:+1 212 686 7400f:+852 2520 1165f:+49 69 9754 4900f:+44 20 7675 7500f:+1 212 686 2626e:[email protected]:[email protected]:[email protected]:[email protected]

  • ABOUT DATAMONITOR

    Datamonitor is a leading business information company specializing in industry analysis.

    Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiasedexpert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive,Energy, Consumer Markets, and Financial Services.

    The company also advises clients on the impact that new technology and eCommerce will have ontheir businesses. Datamonitor maintains its headquarters in London, and regional offices in NewYork, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies.

    Datamonitor's premium reports are based on primary research with industry panels and consumers.We gather information on market segmentation, market growth and pricing, competitors and products.Our experts then interpret this data to produce detailed forecasts and actionable recommendations,helping you create new business opportunities and ideas.

    Our series of company, industry and country profiles complements our premium products, providingtop-level information on 10,000 companies, 2,500 industries and 50 countries. While they do notcontain the highly detailed breakdowns found in premium reports, profiles give you the most importantqualitative and quantitative summary information you need - including predictions and forecasts.

    All Rights Reserved.

    No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic,mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc.

    The facts of this profile are believed to be correct at the time of publication but cannot be guaranteed. Please note that thefindings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faithfrom both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitorcan accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

    Diageo plc Page 2 Datamonitor

    Diageo plc

  • TABLE OF CONTENTS

    Company Overview..............................................................................................4

    Key Facts...............................................................................................................4

    SWOT Analysis.....................................................................................................5

    Diageo plc Page 3 Datamonitor

    Diageo plcTABLE OF CONTENTS

  • COMPANY OVERVIEW

    Diageo produces and distributes a large collection of leading branded premium spirits, beer andwine. The company operates across the US Europe, and internationally. It is headquartered inLondon, UK and employed 22,086 people as on 30th June 2007.

    The company recorded revenues of 9,917 million during the fiscal year ended June 2007, anincrease of 2.2% over 2006. The increase in revenues was primarily due to the growth of JohnnieWalker, Smirnoff, Baileys and Captain Morgan brands across a number of global markets. Theoperating profit of the company was 2,159 million during fiscal year 2007, an increase of 5.6% over2006.The net profit was 1,489 million in fiscal year 2007, a decrease of 22% compared with 2006.

    KEY FACTS

    Diageo plcHead Office8 Henrietta PlaceLondonW1G 0NDGreat BritainGBR

    44 207 927 5200Phone

    44 207 927 4600Fax

    http://www.diageo.comWeb Address

    9,917.0Revenue / turnover(GBP Mn)

    JuneFinancial Year End

    22,086Employees

    DEONew York Ticker

    DGELondon Ticker

    Diageo plc Page 4 Datamonitor

    Diageo plcCompany Overview

  • SWOT ANALYSIS

    Diageo is engaged in a broad range of activities within the beverage alcohol industry. Its operationsinclude producing, distilling, brewing, bottling and packaging, distributing, developing and marketinga range of brands in approximately 180 markets around the world. In 2006, 17 of the groups brandswere among the top 100 premium distilled spirits brands worldwide. Wide portfolio of products helpsthe company to reach out to broad consumer segment giving it a competitive advantage. However,increase in the prices of raw materials could adversely affect the margins of the company.

    WeaknessesStrengths

    Low average revenuegrowth rateWide portfolio of productsContingent liability and litigationsMarket leadership

    Acquisitions and disposals

    ThreatsOpportunities

    Rising raw material pricesEnhanced operations in the Asia PacificChanging consumer preferencesPositive outlook for global spirits marketIndustry consolidationGrowing wine market

    Strengths

    Wide portfolio of products

    Diageo is engaged in a broad range of activities within the beverage alcohol industry. Its operationsinclude producing, distilling, brewing, bottling and packaging, distributing, developing and marketinga range of brands in over 180 markets around the world. Diageo produces and distributes a leadingcollection of branded premium spirits, beer and wine. In 2006, 17 of the groups owned brands wereamong the top 100 premium distilled spirits brands worldwide. The group also sells ready to drinkprogressive adult beverages in the US and certain markets supplied by the US. Its ready to drinkprogressive adult beverages include Smirnoff Ice, Smirnoff Black Ice, Smirnoff Twisted V, SmirnoffMule, Smirnoff Spin, Smirnoff Storm, Smirnoff Caesar, Smirnoff Caipiroska, Smirnoff Signatures,Smirnoff Source, Smirnoff Fire and Smirnoff Raw Tea. References to Smirnoff Black Ice includeSmirnoff Ice Triple Black in the US.

    Diageos collection of premium drinks comprises brands owned by the company as well as thebrands the company holds under agency agreements. Diageos premium global priority brandsinclude: Smirnoff vodka and Smirnoff, Johnnie Walker, Captain Morgan, Baileys Original Irish Creamliqueur, J&B, Jos Cuervo, Tanqueray, and Guinness among others. Diageos principal agencybrand is Jos Cuervo in North America and many other markets with distribution rights extending

    Diageo plc Page 5 Datamonitor

    Diageo plcSWOT Analysis

  • to 2013. Diageo also brews and sells other companies beer brands under licence, including Budweiserand Carlsberg lagers in Ireland, Heineken lager in Jamaica and Tiger beer in Malaysia.

    Diageo has eight global priority brands (based on current and future earnings potential). In 2007,the global priority brands accounted for 59% of total volume (83.3 million equivalent units), andcontributed net sales of 4,283 million. Diageo manages its other brands by category, as local prioritybrands and category brands. Local priority brands make the greatest contribution to operating profitin a business area (North America, Europe, International or Asia Pacific), rather than worldwide.Diageo has identified 26 local priority brands. In 2007, local priority brands contributed volume of25.6 million equivalent units, representing 18% of total volume, and net sales of 1,641 million.Examples of local priority brands include Crown Royal Canadian whisky in North America, WindsorPremier whisky in Asia Pacific, Buchanans De Luxe whisky in International, Gordons gin in Europe,Cacique rum in Europe, Bundaberg rum in Asia Pacific, Seagrams VO whisky and Seagrams 7Crown whiskey in North America, Bells Extra Special whisky in Europe, Malta Guinness non-alcoholicmalt in International and Sterling Vineyards wines in North America. The remaining brands aregrouped under category brands. Category brands include spirits, beer and wine brands and in 2007,which contributed a volume of 32.0 million equivalent units, representing 23% of total volume, andnet sales of 1,550 million. Examples of category spirits brands are Gordons gin (all markets exceptEurope in which it is a local priority brand), Gordons vodka, The Classic Malt whiskies and WhiteHorse whisky. In 2007, Diageo sold 12.4 million equivalent units of beers other than Guinness,achieving net sales of 673 million. Other beer volume was attributable to mainly company ownedbrands such as Red Stripe, Pilsner, Tusker and Harp lager, with a minority being attributable tobeers brewed and/or sold under license, such as Tiger beer in Malaysia and Heineken lager inJamaica. In addition, Diageo produces and markets a wide selection of wines. These include wellknown labels such as Beaulieu Vineyard, Sterling Vineyards and Chalone Vineyards in the US,Blossom Hill in the United Kingdom, and Barton & Guestier and Piat dOr in Europe. Wide portfolioof products helps the company to broaden consumer segment giving it a competitive advantage.

    Market leadership

    Diageo is the worlds leading premium drinks business with a wide collection of international brands.Diageo was the 17th largest publicly quoted company in the UK as in August 2007, with a marketcapitalization of approximately 26.7 billion. Diageo is the leading premium spirits business in theworld by volume, by net sales and by operating profit and it manages 8 of the worlds top 20 spiritsbrands. Smirnoff is Diageos highest volume br