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Diageo is an invented name that was created by the branding consultancy Wolff Olins in 1997. [4] The name is composed of the Latin word diēs, meaning "day", and the Greek root geo-, meaning "earth"; and is meant to reference the company slogan "Celebrating Life, Every Day, Everywhere".
Diageo was founded in 1997, but our brands date back far earlier – some as far back as the 17th century. While we honour the past, we are passionate about nurturing categories old and new, and building authentically crafted, culturally relevant brands. To develop and grow a brand requires creativity, belief and determination.
Diageo plc is a world leader in branded food and drinks. The company was formed from the December 1997 merger of liquor and beer giant Guinness PLC and alcohol and food power Grand Metropolitan plc. Diageo (pronounced dee-AH-zhay-oh) consists of four main businesses.
Jul 25, 2023 · The name "Diageo" was derived from the Latin word for day ("dies") and the Greek word for world ("geo"), signifying the company's stated purpose to celebrate life, every day, everywhere. This merger brought together an impressive collection of internationally recognized brands under one umbrella, setting the stage for Diageo's rise as a leading global player in the beverage industry.
- A History of Two Brands
- Acquisition Strategy
- Strategy and Operations
- Sales and Marketing
- Final Thoughts and Key Takeaways of Diageo’s Story
Diageo's history goes back much further than the company's founding in 1997 when the Guinness brand merged with Grand Metropolitan PLC.
As we showed in the first chapter, the two giant companies that formed the holding company did not come empty-handed, but Diageo has accelerated the pace of acquisitions since the merger. Since the early 2000s, Diago has been especially active in acquiring established and new businesses on the beverages market. A list of its M&A activity: 1. Seagra...
Overall strategy and the company’s key objectives
There is an obvious potential for growth in the beverage alcohol sector due to demographics and economics. The goal of our Performance Ambition cannot be achieved with growth alone in the long term. Therefore, one of Diageo’s key strategies is to focus on sustainability in expansion and growth. The company has a history of creating sustained, quality growth. The 200th anniversary of Johnnie Walker and Guinness shows how great brands can be built over time by placing a focus on quality, brand...
Society 2030 - Diageo’s 10-year plan to progress
The above core objects are embraced by the company’s 10-year plan, which was slightly postponed by the COVID-19 pandemic. The main goals include: 1. Creating a positive yet responsible image of alcohol 2. Promoting diversity and inclusion 3. Preserving the natural resources required for future success 4. Giving back to the community in a positive way One of the major elements of the plan is to promote sustainability, for which the group’s new facility is a great example. The sustainable desig...
Shared Service Centers around the world
Almost all Fortune 500 companies have already established their shared service centers, which help to significantly reduce labor costs on the one hand and standardize internal processes on the other. When it comes to centralizing processes, Diageo is a pioneer, operating SSCs with hundreds of employees at several locations - currently in Budapest, Bogota, Nairobi, Manila, and Bengaluru. As is common practice in the market, Diageo SSCs combine and provide the following functions to the Group's...
Flagship products of the company
Through companies acquired over the decades, Diageo owns and controls more than 200 different brands. Thanks to a portfolio shakeout before and immediately after the merger, the group no longer owns any hotels, pubs, because or restaurant chains and has sold most of its non-core business. As a result, the group's workforce has been reduced by almost 60,000 employees. However, the remaining portfolio is easily manageable and consists solely of alcoholic beverages, which can be sold both direct...
Sales
According to Diageo's LinkedIn profile, nearly one-third of its employees work in sales, which is above average. The company's sales team is made up of several departments that work in groups by country and region, as well as by product range and customers. The office-based salesforce contacts customers mainly by phone and serves wholesalers and grocery chains. In addition, Diageo also has a very strong field sales team that visits customers in Diageo countries by car and in person. These are...
Marketing
Employer branding is a key component of Diageo's marketing activities, which focus on finding, attracting, and retaining the best talent. This is supported by Diageo's above-average employee benefits and its youthful and relaxed corporate culture (in countries where alcohol is not banned, offices have a dedicated Diageo bar where employees can sample the company's products - exclusively outside working hours). Diageo is a holding company whose marketing is primarily focused on getting the wor...
Growth by numbers
The Diageo Group has been able to steadily increase its profitability in recent years thanks to a well-functioning strategy. Instead of focusing on trendy solutions, it has concentrated on cost reductions and continued M&A activities. If there is anything to learn from Diageo, it can build brands. There are few holding companies as successful as this one, which not only recognizes good businesses at the right time but takes great care in preparing some of them to rise. And where it does not s...
Key takeaways from Diageo’s story:
1. The merger of two strong companies: The secret of Diageo's success lies in the merger of two companies that could perform well independently. While Guinness evolved from a brewery into a major player in the beverage market, Grand Metropolitan PLC came from the hospitality and catering industry. Time has proven them right, as they have complemented each other perfectly. 2. Focused portfolio: Even before the merger, the two founding companies had recognized that not all of the companies acqu...
30% improvement in water use efficiency globally. Ensure 100% of our packaging is widely recyclable (or reusable/compostable) Spirit of Progress. Heritage. Our history. Our business was built by pioneering entrepreneurs, including John and Alexander Walker, Elizabeth Cumming, Charles Tanqueray and Arthur Guinness.
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[relinking] Home History Owners Mission How It Works How It Makes Money Diageo plc (DEO) InformationA Brief History of Diageo plc (DEO) Foundation and Early Years Diageo plc was formed in 1997 through the merger of Guinness plc and Grand Metropolitan plc. The merger created a company with a diverse portfolio of alcoholic beverages. As of 2021, Diageo holds a strong position in the global beverage market, generating revenue of £12.7 billion. Acquisitions Over the years, Diageo has made ...
