Diageo

Whisky Concerns

DISTILLERS COMPANY LIMITED (D.C.L) (1877 – 1986) also see Diageo

Lijst van dochterondernemingen per 22 Juli 1980

Ainslie & Heilbron (Distillers) Ltd, Glasgow

Baird – Taylor Ltd, Glasgow

John Begg Ltd, Glasgow

Benmore Distillers ltd, Glasgow

J.A. Bertram & Co, Ltd, Edinburgh

John Bisset & Co, Ltd, Edinburgh

James Buchanan & Co, Ltd, Edinburgh

Bulloch Lade & Co, Ltd, Glasgow

Geo. Cowie & Son, Dufftown

John Crabbie & Co, Ltd, Edinburgh

Craighall Bonding Co, Ltd, Glasgow

A. & A. Crawford & Co, Ltd, Glasgow
Daniel Crawford & Co. Ltd, Glasgow

The Distillers Agency Ltd, South Queens – ferry
Peter Dawson Ltd, Glasgow

16. John Dewar & Sons Ltd, Perth

17. A. Ferguson & Co, Ltd, Edinburgh

18. Donald Fisher Ltd, Edinburgh

19. John Gillon & Co, Ltd, Glasgow

20. Wm. Greer & Co, Ltd, Glasgow

21. John Haig & Co, Ltd, Fife

22. J.W. Hardie Ltd, Edinburgh

23. J.R. Harvey & Co, Ltd, Glasgow

24. John Hopkins & Co, Ltd, Glasgow

25. Low Robertson & Co, Ltd, Edinburgh

26. W.P. Lowrie & Co, Ltd Glasgow

27. Macdonald Greenlees Ltd, Edinburgh

28. Macleay Duff (Distillers) Ltd, Glasgow

29. D. & J. McCallum Ltd, Edinburgh

30. John McEwan & Co, Ltd, Edinburgh

31. Mitchell Bross, Ltd, Glasgow

32. Jas. Munro & Son Ltd, Edinburgh

33. John Robertson & Son Ltd, Edinburgh

34. Wm. Sanderson & Son Ltd, Edinburgh

35. Slater, Rodger & Co, Ltd, Glasgow

36. J. & G. Stewart Ltd, Edinburgh

37. R.H. Thomson & Co, (Distillers) Ltd, Edinburgh

38. John Walker & Sons Ltd, London

39. James Watson & Co, Ltd, Dundee\

40. White Horse Distillers Ltd, Glasgow

41. Wright & Greig Ltd, Glasgow

42. J.R. Harvey & Co, Ltd, Glasgow

43. John Hopkins & Co, Ltd, Glasgow

44. Low Robertson & Co, Ltd, Edinburgh

45. W.P. Lowrie & Co, Ltd Glasgow

46. Macdonald Greenlees Ltd, Edinburgh

47. Macleay Duff (Distillers) Ltd, Glasgow

48. D. & J. McCallum Ltd, Edinburgh

49. John McEwan & Co, Ltd, Edinburgh

50. Mitchell Bross, Ltd, Glasgow

51. Jas. Munro & Son Ltd, Edinburgh

52. John Robertson & Son Ltd, Edinburgh

53. Wm. Sanderson & Son Ltd, Edinburgh

54. Slater, Rodger & Co, Ltd, Glasgow

55. J. & G. Stewart Ltd, Edinburgh

56. R.H. Thomson & Co, (Distillers) Ltd, Edinburgh

57. John Walker & Sons Ltd, London

58. James Watson & Co, Ltd, Dundee\

59. White Horse Distillers Ltd, Glasgow

60. Wright & Greig Ltd, Glasgow

April 2009

Diageo / L M V H

Diageo leek altijd een buitengewoon saai bedrijf met weinig vreemd vermogen. Maar hetzelfde conservatisme zou ’s werelds grootste drankenproducent nu wel eens kunnen

helpen om de 10 miljard Euro of meer te vinden die nodig zijn om de drankendivisie van

L M V H over te nemen. Althans als de Franse luxegoederenproducent die ook wil verkopen.

Voor Diageo is het zeker zinvol de 66 % van Moet Hennessy te kopen die nog niet in zijn bezit is. Dat wat Diageo – topman Paul Walsh een “luxepremie” noemt, kan een krachtige

verdediging van de winstmarge opleveren tegen de toenemende “normalisering”van de be-

drijfstak.

De cognacs en champagnes van Moet Hennessy hebben immers een zeer luxueuze uitstraling.

Diageo kan bogen op een betrekkelijk sterke balans; de netto schuld komt overeen met 2,5 maal de winst vóór belastingen. Nu de kapitaalmarkten weer wat meer opengaan, kan Diageo

De financiering van een deal waarschijnlijk wel rond krijgen, voor gelijke delen in schulden

en aandelen . het vooruitzicht op synergievoordelen stelt Diageo in staat een aantrekkelijk bod

uit te brengen – misschien wel 12,5 maal de winst, na aftrek van de marketing kosten, hetgeen

Bacardi in 2004 ook voor Grey Goose heeft betaald – zonder concessies te hoeven doen aan de winst.

Bovendien heeft Diageo alle redenen om een transactie erdoor te drukken. De handen van het

concern zijn gebonden door een ingewikkelde aandeelhoudersovereenkomst rondom Moet

Hennessy.

Het mag geen andere cognacproducenten overnemen, en kan niet onder de huidige regeling uit zonder een hoge boete te moeten betalen.

Maar Diageo heeft wel een partner nodig. En ook al gonst de markt van de geruchten, er is

voor L M V H geen voor de hand liggende reden om mee te doen. Hoewel de drankenomzet

van het concern door het opmaken van de voorraden in het eerste kwartaal met maar liefst 22

procent is gedaald, maakt de devisie over het algemeen een zeer solide indruk, zeker in verge-

lijking met de veel temperamentvollere modemerken van L M V H

En L V M H heeft het geld beslist niet nodig. De schuldenlast bedroeg eind 2008 slechts 28

procent van het aandelenkapitaal.

April 2009

Diageo / L M V H

Het concern mag dan wellicht overnameplannen hebben, de aanlokkelijkste kandidaten

bijvoorbeeld Hermes of Patek Phillipe – lijken buiten bereik te liggen, omdat ze zijn opgesloten in complexe structuren van familieaandeelhouders

Diageo kan en wil Moet Hennessy misschien wel overnemen van L M V H, maar als

Bernard Arnault, de grootste aandeelhouder van dat concern, niet van gedachten verandert, zal die wens voorlopig onvervuld blijven

DIAGEO

1759 Arthur Guiness signs 9000 year lease on St. James Gate Brewery in Dublin

1934 MRMA Ltd (MrMa Ltd) incorporated as a public company

1961 – 1962 MRMA Ltd shares first listed on the Stock Exange

name changed to Grand Metropolitan Hotels Ltd (GrandMet)

1971 – 1973 Grand Metropolitan Hotels Ltd enters the brewing industry by acquiring

Truman, Hanbury & Buxton Ltd

1983 GrantMet buys International Distillers & Vintners ( I.D.V.)

1985 Guiness buys Arthur Bell Distillers

1986 Guiness acquires the Distillers Company Ltd who merges with Arthur Bell

Distillers to become United Distillers

1990 Guiness and L V M H in 12 % cross – shareholding

1997 Guiness and GrandMet form Diageo

United Distillers ( U.D.) and International Distillers & Vintners ( I.D.V.)

merge and form United Distillers & Vintners ( U.D.V.)

1998 Diageo sells Dewar’s and Bombay Gin to Bacardi, with the distilleries

Aberfeldy, Aultmore, Craigellachie and Royal Brackla

2000 Diageo sells Burger King and Pillsbury

2001 Diageo and Pernod Ricard buy Seagram Spirits & Wine from Vivendi

International

2004 Moet Hennessy ( owned by Diageo and L V M H buys Glenmorangie

2005 United Distillers buys Bushmills from Pernod Ricard

DIAGEO 2012

28 DISTILLERIES

Achroisk

Benrinnes

Blair Athol

Caol Ila

Cardhu

Clynelish

Cragganmore

Dailuaine

Dalwhinnie

Dufftown

Glen Elgin

Glen Ord

Glen Spey

Glendullan

Glenkinchie

Glenlossie

Inchgower

Knockando

Lagavulin

Linkwood

Mannochmore

Mortlach

Oban

Roseisle

Royal Lochnagar

Strathmill

Talisker

Teaninich

Diageo announces Haig Club global launch

06 October, 2014

Diageo has announced the worldwide launch of its single grain scotch whisky Haig Club.

Haig Club, which is a collaboration between Diageo, David Beckham and Simon Fuller, will now be available in bars, restaurants and retail stores in the UK.

The whisky will roll out in China, South Korea, Vietnam, Malaysia, Singapore and the US in the next few weeks and be available in duty free shops globally following the exclusive release period in the UK.

Kathy Parker, senior vice president, Haig Club said: “Haig Club is designed to be different. Historically single grain whisky has been in the shadow of single malts and blended scotch, but Haig Club represents a new direction in scotch whisky, which brings single grain scotch to the forefront.”

To celebrate the global launch of Haig Club, Beckham and business partner Fuller hosted an exclusive Haig Club weekend in the heart of Scotland on the outskirts of Edinburgh.

“I am incredibly proud to have been part of the creation of Haig Club, “ Beckham said.

“I think we have made something really special. For me it has meant understanding how whisky is made and enjoyed and then working with some incredible people to write a new chapter for Haig

Juli 2009

Diageo

Bryan Donaghey, directeur Schotland maakt bekent dat Port Dundas, Dundashill Cooperage

en Kilmarnoc Packaging worden gesloten, dit gaat ten koste van ongeveer 700 banen

De emballage fabriek te Fife wordt uitgebreid en komen er 400 nieuwe arbeidsplaatsen bij

te Clackmannanshire wordt een nieuwe kuiperij gesticht

In Cameronbridge Distillery te Fife wordt doorlopend geïnvesteerd: de afgelopen twee jaar was dir 40.000.000 Pounds, en voor de komende tijd is 65.000.000 Pound geplant

In de zomer van 2011 wordt voor 9.000.000 Pound een nieuwe kuiperij gebouwd te Cambus

bij Alloa

De kuiperij van Carsebridge wordt gesloten

Diageo vermindert de emballage fabrieken van drie naar twee

De investeringen worden geconcentreerd op twee lokaties: Glasgow en Fife

Er gaat 86.000.000 naar de Leven Packaging Plant te Fife

In de Shieldhall Packaging Plant te Glasgow was al 15.000.000 Pound geïnvesteerd, hierbij

komen nog 3.000.000 Pound

2009

Diageo

Onderstaande 28 distilleerderijen zijn het eigendom van Diageo:

Capaciteit in liters pure alcohol:

1. Auchroisk 3580.000

2. Benrinnes 2540.000

3. Blair Athol 1940.000

4. Caol Ila 3650.000

5. Cardhu 2390.000

6. Clynelish 4200.000

7. Cragganmore 1520.000

8. Dailuaine 3370.000

9. Dalwhinnie 2200.000

10. Dufftown 4120.000

11. Glendullan 3360.000

12. Glen Elgin 1830.000

13. Glenkinchie 1750.000

14. Glenlossie 2140.000

15. Glen Ord 5000.000

16. Glen Spey 1390.000

17. Inchgower 1990.000

18. Knockando 1290.000

19. Lagavulin 2250.000

20. Linkwood 2240.000

21. Mannochmore 3220.000

22. Mortlach 2910.000

23. Oban 670.000

24. Roseisle 10.000.000

25. Royal Lochnagar 450.000

26. Strathmill 1700.000

27. Talisker 1940.000

28. Teaninich 4000.000

September 2009

DIAGEO

The Manager’s Choice Single Cask Selection

Op 17 februari jl. heeft de Blair Athol distilleerderij in de Schotse Hooglanden geschiedenis

geschreven met een nieuwe speciale botteling.

Op die dag in februari zijn een selecte groep distilleerderijmanagers en zintuiglijke whisky-

experts bij elkaar gekmen om handgeselecteerde single malt vaten uit 27 distilleerderijen

te beoordelen. Ze hadden één resultaat in gedachten; welke vaten hiervan zijn exceptioneel ?

Deze unieke vaten werden vervolgens zorgvulding gebotteld op basis van hin natuurlijke

cask strenght als: The Manager’s Choice Single Cask Selection

Er komen vier releases:

1^e Release in September 2009:

1997 Cardhu, gerijpt in een Bourbon Barrel 57.3 % 252 flessen gebotteld

1998 Glen Elgin, gerijpt in een Sherry Butt 61.1 % 534 flessen gebotteld

1996 Linkwood gerijpt in een Bourbon Barrel 58.3 % 480 flessen gebotteld

1997 Mortlach gerijpt in een Sherry Butt 57.3 % 240 flessen gebotteld

2000 Oban gerijpt in een Sherry Butt 58.7 % 534 flessen gebotteld

1996 Teaninich gerijpt in een Bourbon Barrel 55.3 % 246 flessen gebotteld

De 2^e Release volgt in Januari 2010 met:

Blair Athol, Cragganmore, Dalwhinnie, Glen Spey, Strathmill en Talisker

In Maart 2010 volgt de 3e Release: Caol Ila, Dailuaine, Glen Ord, Glenkinchie, Inchgower,

Mannochmore en Royal Lochnagar

De 4^e Release komt uit in Juni 2010: Auchroisk, Benrinnes, Clynelish, Glendullan, Glenlossie, Knockando en Lagavulin

Totaal gaat het om 27 verschillende Single Malt Whiskies, tot nu toe zijn er dus 26 bekend

nummer 27 zou kunnen zijn Dufftown en wellicht Roseisle ? !

Diageo

April 2010

4 distilleries: Glenkinchie, Blair Athol, Oban and Lagavulin will be selling a single

malt at cask strength and no age statement that will be sold only at that distilleries.

Nick Morgan: “ With three of these new bottlings Glenkinchie, Oban and Lagavulin,

we have been able to take avantage of a number of casks that had to intended for

bottlings in the Distillers Edition, but were found to be surplus to requirements, and

have been sitting in our warehouses ever since”

These have undergone a second maturation in American Oak that has previously held

a sherry treated American Oak cask.

At Coal Ila and Talisker you could buy this whiskies already in 2007, and at Clynelish in

2008.

Other distilleries from Diageo will follow this trend.

October 2010

Roseisle Distillery will be officially opened on 11 October by chief executive Paul

Wash. The site near Elgin is capable of producing up to 12,6 million litres of Spey-

side single malt whisky each year and is designed to quench the thirst of the growing

num ber of Scotch drinkers in Africa, Asia.

DIAGEO

28 June 2011

Diageo has plans for a 10 million pounds to redevelop his Dailuaine distillery

to help increase the whisky production.

The plans would see an upgrade of the existing bio – plant at Dailuaine distillery

which deals with whisky by – products from a number of distilleries from the group

opening the potential for future production capacity increases in Speyside.

It is also possible that the investments could rise to about 20 million pounds to in-

crease capacity at other distilleries by more than 10 million litres per annum.

17 August 2011

CAMERONBRIDGE DISTILLERY

10.000 litres of nitric acid spiled from a container, some of the acid mixed

with water releasing dangerous gases into an outer safety tank.

Cameronbridge grain whisky is used in Diageo’s brands Johnnie Walker, J & B,

Haig and White Horse blends.

Also the neutral grain spirit for Archers, Pimm’s Smirnoff and the gin’s Gordon and

Tanqueray

DIAGEO

29 November 2011

Alloa

A new cooperage is opened at Alloa, named Cambus Cooperage.

A 250.000 whisky casks will be produced in a year.

DIAGEO

20 August 2012

Diageo prepares a bid for Jose Cuervo, the oldest and best selling Tequilla in the world.

Diageo already distributes Cuervo worldwide.

Diageo also invested a 14.000.000 pound in the Viernamese Hanoi Liquor Joint Stock

Company and has bought Ypioca, Brazil’s leading Cachaco Brand for a 300.000.000 pound.

And Diageo will also invest a 5.000.000.000 in Scottish Whisky production over the next

5 years.

DIAGEO

2012

Blends

Bell’s

Black & White

Buchanan’s

Bulloch Lade

Chequers

Dimple (Pinch)

Haig

J & B

Johnnie Walker

McCallums’s

Old Parr

Sanderson’s

Spey Royal

V A T 69

White Horse

Windsor Premier

September 2012

DIAGEO SPECIAL RELEASES

Distillery bottles price comments

in U K pounds

Auchroisk 30 years 2976 230 oldest Auchroisk ever released by the

distillers filled in 1982 and a mix of A-

merican and European Oak refill casks

Brora 35 years 1566 400 Eleventh of a very limited series of an-

nual releases. Vatted from whiskies at

least 35 years old and distilled in 1976

and 1977, aged in refill American Oak

casks

Caol Ila 14 years limited

numbers 66 From a batch made only once a year..

the 7^th limited release of unpeated

Caol Ila, the first at 14 years old, also

the first “sherried”Cao Ila released

in this series. From the 1^st fill ex – bo-

dega European Oak casks filled in 1997

Dalwhinnie 25 years 5358 185 Latest of 4 limited releases to be offered

by the distillery, and the first of these to

come from rejuvenated American oak

hogsheads.

Lagavulin 12 years limited

Numbers 71 Eleventh in a series of special 12 year old

releases from the original distiller’s stock.

Vatted from refill American Oak casks,

each at least 12 years old

Lagavulin 21 years 2772 350 Only the second 21 years old ever bottled

the original distillers. Vatted from 1^st fill

ex – sherry European Oak casks each at

least 21 years old, filled in 1991.

Port Ellen 32 years 2964 600 12^th of a very limited series of annual re –

leases. From refill American Oak and refill

European Oak casks, filled in 1979

Talisker 35 years 3090 525 The oldest limited release ever offered by

the distillery, 16^th in the series. From A –

merican & European Oak refill casks filled

in 1977

DIAGEO

April 2013

Diageo has named Teaninich near Alness as the location for its plans to build a new 50 million pound new malt whisky distillery and will be adjacent the existing Teaninich distillery

but will have its own name and indentity and will have the capacity to produce 13 million

litres of spirit p[er annum from its 16 stills.

Diageo also invest 12 million pound in expanding the Teaninich distillery to almost doublits capacity.

The site will also feature a bio – energy plant.

The work will begin in 2014.

Diageo also will invest in Mortlach distillery in building a new still house and an other invest-

ment will be at Glendullan distillery to process co products in an anaerobic digestion process, producing bio – gas which will be used to power the Glendullan distillery.

There are also expansion and upgrade developments for more then 40 million pound in

Linkwood, Mannochmore, Glendullan, Dailuaine, Benrinnes, Inchgower, Cragganmore,

Glen Elgin, Glen Ord and in a new bio – energie plants in Glenlossie and Dailuaine.

Also new warehouse are build at Cluny near Kirkcaldy.

And at Talisker a new visitor centre is build for a 1 million pound.

DIAGEO

8 June 2013

U.S. Diageo has purchased Cabin Fever Maple Flavoured Whisky from the Robillard Family

to capitalise on two grow trends in the U.S. flavoured whiskey and craft distilling products.

The Brand will be the newest addition to Diageo’s Catalyst Division which focuses on what

Diageo calls “High Potential Brands”.

DIAGEO

6 May 2013

Ivan Menezes will succeed Paul Walsh as new leader of Diageo on 1 July 2013.

Paul Walsh will step down from the Board on September 2013 and retire from

Diageo on 30 June 2014.

Ivan Menezes is member of the board and joined Diageo in 1997.

THE MANAGER’S CHOICE / SINGLE CASK SELECTION

Auchroisk

Benrinnes

Blair Athol

Caol Ila

Cardhu

Clynelish

Cragganmore

Dailuaine

Dalwhinnie

Dufftown

Glendullan

Glen Elgin

Glenkinchie

Glenlossie

Glen Ord

Glen Spey

Inchgower

Knockando

Lagavulin

Linkwood

Mannochmore

Mortlach

Oban

Royal Lochnagar

Strathmill

Talisker

Teaninich

Diageo completes £150m warehouse complex

08 November, 2013

Diageo has completed the construction of a new £150m warehouse complex in Fife, as part of last year's pledge to invest £1bn in its Scotch operations over a five-year period.

The 545 acre Cluny Bond development at Begg Farm near Kirkcaldy, includes 46 warehousing units - each of which will store up to 60,000 casks – and will house the additional spirit needed to meet demand for its major brands such as the 18.9m 9-litre case Johnnie Walker.

In addition to the two completed warehouses, Diageo reported a further five will be operational in Spring 2014 with others being completed throughout 2014.

The world’s largest drinks group also recently invested at its Blackgrange facility in Clackmannanshie taking overall investment in warehousing to £180m.

The new Fife complex will create 25 direct Diageo jobs on site, as well as a potential further 15-20 indirect jobs in the area.

Harry Fox, Diageo’s operations director for warehouse and blending, said: “Over the next few months we will be transporting thousands of casks of Scotch whisky for storage here, where they will be locked away and left to mature before making their way to the 180 countries around the world where the demand for Diageo’s brands is growing on a daily basis.

“Diageo has more than 1,200 people working for the company in Fife and the new team at Cluny Bond share their commitment to continue to ensure the area plays a key role in the Scotch whisky success story.”

November 2013

DIAGEO, Scotland’s biggest whisky distiller, has offered to sell most of rival Whyte & Mackay, the Office of Fair Trading (OFT) said today.

The FTSE 100 group gained control of Glasgow-based Whyte & Mackay after buying Indian conglomerate United Spirits.

Diageo has offered to sell Whyte & Mackay’s blended whisky business and retain two malt distilleries.

Diageo’s Bell’s brand and Whyte & Mackay’s eponymous blend are major competitors and the OFT said retailers had expressed concern that the tie-up would lessen competition.

Chris Walters, the OFT’s chief economist and decision maker in the case, said: “These companies are two of the leading suppliers of blended bottled whisky in the UK, especially to supermarkets and other large retailers.

“Our investigation considered a wide range of evidence and we concluded that the likely loss of competition could give rise to higher prices for retailers, and ultimately consumers.

“We are now considering Diageo’s offer to sell the bulk of the Whyte & Mackay business with the exception of two malt distilleries, to address our concerns.”

Diageo has named Teaninich near Alness as the location for its plans to build a new 50 million pound new malt whisky distillery and will be adjacent the existing Teaninich distillery

but will have its own name and indentity and will have the capacity to produce 13 million

litres of spirit p[er annum from its 16 stills.

Diageo also invest 12 million pound in expanding the Teaninich distillery to almost doublits capacity.

The site will also feature a bio – energy plant.

The work will begin in 2014.

Diageo also will invest in Mortlach distillery in building a new still house and an other invest-

ment will be at Glendullan distillery to process co products in an anaerobic digestion process, producing bio – gas which will be used to power the Glendullan distillery.

There are also expansion and upgrade developments for more then 40 million pound in

Linkwood, Mannochmore, Glendullan, Dailuaine, Benrinnes, Inchgower, Cragganmore,

Glen Elgin, Glen Ord and in a new bio – energie plants in Glenlossie and Dailuaine.

Also new warehouse are build at Cluny near Kirkcaldy.

And at Talisker a new visitor centre is build for a 1 million pound.

Diageo to invest £30m in Clynelish

16 January, 2014

Diageo has announced plans for a £30 million expansion of its Clynelish distillery in Sutherland.

In the latest major stage in Diageo’s £1 billion programme to increase Scotch whisky production, plans have been submitted to Highland Council for the major expansion of Diageo’s most northerly distillery.

The Clynelish expansion will take the on-going capital investment by Diageo in the Highland Council region alone to almost £150m, including major expansions at Glen Ord and Teaninich Distilleries and plans to build a new distillery at Alness.

Diageo’s director of distillation and maturation, Keith Miller said: “Clynelish is a very special distillery, producing spirit which is highly prized for its quality and character and is an important part of our Scotch whisky blending inventory, so this is an important part of our investment programme.

The Clynelish announcement came as six copper stills were delivered to the Glen Ord Distillery as part of the £25 million expansion plan which is doubling the size of that distillery to more than 10million litres per annum.

Diageo is also doubling the capacity at the Teaninich distillery in Alness and is progressing plans to build a new malt whisky distillery and renewable energy plant on land adjacent to Teaninich. In total these projects represent a capital investment of nearly £150million across the Highland Council area.

Clynelish Distillery produces single malt whisky, it describes as “unique in both taste and texture” which is highly prized by Diageo’s master blenders for use in brands such as Johnnie Walker. Clynelish is also a highly regarded as a single malt whisky in its own right. The distillery is also home to one of Diageo’s 12 distillery visitor centres, receiving more than 5,000 visitors per year. Clynelish is near the Sutherland town of Brora.

Under the plans submitted Clynelish distillery will see the installation of an additional mash tun, 10 new washbacks and six new copper stills for distilling the spirit. This adds to the 10 washbacks and six stills which the distillery currently has and will effectively double the production capacity to 9m litres of alcohol per annum, while retaining the character and quality of the spirit. A bio-energy plant is also planned for the site to provide non-fossil fuel energy to power the distillery.

The world’s leading premium drinks business, is also investing in new warehousing to store the additional spirit, with a major new bonded warehouse site being developed at Cluny in Fife.

Diageo to release The Beast

02 December, 2013

Diageo has told the trade it will re-release Mortlach single malt scotch next year, a dram dubbed “The Beast of Dufftown”.

In recent years the Speyside distillery’s heavy, dark whisky was reserved for blending and has only been made available in very limited numbers as a single malt, but the Dufftown site will now see capacity doubled from 3.8m to 7.6m litres in a project costing £18m.

From mid-2014 the distillery will be renewed and expanded, while the re-branded single-malt will be made available in global markets.

Mortlach single malt will be aimed at global travel retail and the luxury and connoisseur segments and will be released in four expressions: Rare Old, Special Strength, 18 YO and 25 YO.

Diageo will continue to use the distillery’s output for its blended whiskies.

Details of distribution and price will be disclosed in February 2014.

Rare Old (43% abv) will have an “affordable luxury price”, Nick Morgan, head of whiskies outreach at Diageo, told Drinks International, and has been aged in a combination of refilled and first fill American and European oak.

Special Strength (49% abv) is a higher proof version of Rare Old, the 18YO (43.4% abv) has been aged in first fill and refill European and American oak, while the 25YO (43.4% abv) was matured in American refill casks but has the character of European oak, said Morgan.

According to Diageo, Mortlach is produced by an “astonishingly complicated and unique distillation process”, which has been explained as ‘2.81 distilled’, as most but not all of the whisky is distilled three times.

Dave Broom, said of Mortlach single malt in his The World Atlas of Whisky (2010): "At its best in European oak - it has the muscle to cope - Mortlach has become a cult single malt, but is unlikely ever to be a front-line player because its individuality is too highly prized by blenders.

“This throwback to the old days, days before Dufftown even existed, is at the foundation of many famous blends. It is the dark reduction of whisky to some primal essence."

Court threat to Diageo’s Indian deal

Diageo: Fighting court battle against stalled India deal. Picture: Ian Rutherford

SPIRITS giant Diageo pledged yesterday to fight an Indian legal decision that has stalled a deal giving the British group control of United Spirits, the country’s biggest drinks business.

The court made the decision last Friday in response to a petition by creditors involved with the transaction.

Diageo and United Breweries, the Indian holding firm that sold its shares in United Spirits (USL) to the British company, both said they planned to appeal the decision.

The deal has been caught up in a separate legal battle involving India’s Kingfisher Airlines. Kingfisher and United Breweries are part of Indian business magnate Dr Vijay Mallya’s corporate empire.

The airline has been grounded since 2012 and is unable to pay off its loans, with United Breweries becoming a guarantor for its debts. Kingfisher creditors trying to get their money back petitioned for the deal between USL and Diageo to be stopped.

Diageo said in a statement: “We are disappointed, as a bona fide purchaser for value of the USL shares, that we have been brought into the private dispute between Kingfisher Airlines and its creditors. Once we receive the full written order of the Court of Appeal, we will review the detail of that order.”

Drinks analysts were sceptical that the legal decision would derail the deal. “This court order can cause only minor hiccups in the deal,” Deven Choksey, managing director at KR Choksey Securities, said.

In November 2012 Diageo said it was buying a majority stake in USL for £1.28bn . The deal would give Diageo a 53.4 per cent share in United Spirits. Without the transaction, Diageo’s stake in USL would be 19 per cent.

Diageo to invest £30m in Clynelish

16 January, 2014

Diageo has announced plans for a £30 million expansion of its Clynelish distillery in Sutherland.

The world’s leading premium drinks business, is also investing in new warehousing to store the additional spirit, with a major new bonded warehouse site being developed at Cluny in Fife.

Whyte & Mackay

24 January, 2014

It’s business as usual then at Whyte & Mackay – that is the Glasgow-based spirits producer is once more up for sale. Incredibly this is the 10th time since the beginning of the ’70s and in those 40-plus years there have been no fewer than 18 MDs or CEOs come and go, and heaven only knows how many different marketing departments.

This time around the cause is Diageo’s acquisition of a majority share in United Spirits – the Indian company which acquired Whyte & Mackay for a tad under £600 million back in 2007. Clearly anxious to avoid the scrutiny of the Office of Fair Trading, Diageo has made a pre-emptive strike with the announcement that it is to sell Whyte & Mackay but not lock, stock and smoking barrels – because apparently the world’s number one multinational wants to keep the malt distilleries Dalmore (pictured) and Tamnavulin, but is OK with W&M’s other distilleries – Old Fettercairn and Jura – going under the hammer.

As Diageo already boasts some 28 distilleries in its arsenal this decision has raised eyebrows in some quarters. “What on earth does it want Tamnavulin for? All its distilleries are expandable and it is pouring colossal amounts of investment into new distilleries like Roseisle,” said one industry observer. “They must be a bargaining tool.”

Both are good points. Tamnavulin is not a notable single malt and should the ‘competition authorities’ still chafe at Diageo’s share of the Scotch whisky market creeping towards 40%, the drinks giant can offer up both Tamnavulin and Dalmore – which, as a singular spirit, has attracted a wide following among the single malt cognoscenti.

Of course Diageo’s announcement has ushered forth a frenzy of speculation as to who will be the 11th owner of Whyte & Mackay. And there have been one or two comings and goings at the top which have added to the potpourri. Chief executive at the time of Diageo’s bid for United Spirits, John Beard, has departed. His replacement, Bryan Donaghey, was previously managing director of Diageo Scotland until earlier this year when he moved to the role of Europe supply director, and finally to supply strategy director up until his decision to leave and almost in the same week he took up the reins at Whyte & Mackay.

Whyte & Mackay has offered no explanation for Beard’s going and Diageo is tight-lipped over Donaghey, issuing a terse statement: “Bryan has severed his employment with Diageo and it is not appropriate for us to comment any further, but we wish him the very best for the future.” The company did add that ‘Bryan had served Diageo with ‘distinction’. Clearly, though, ‘Bryan’ relishes the challenge as one would be forgiven for thinking he’d jumped out of the frying pan into the fire.

Just one more thing on Beard though. He came from the fused UK distribution arm of Bacardi and Brown-Forman, so perhaps it is no surprise that both Brown-Forman and Bacardi have been mentioned as possible Whyte & Mackay suitors, as has as has Greenall’s owner Quintessential Brands, and there is speculation that there is growing interest among companies in China. How long is a piece of string?

08/04/2014

AN alcohol charity has slammed David Beckham after he signed up to promote a new whisky.

The 38-year-old retired football has teamed up with manager Simon Fuller and drinks company Diageo to launch Haig Club, a new single grain Scotch whisky.

As well as developing the brand, Beckham has been given tasked with promoting a “responsible drinking programme” for the spirit.

But Alcohol Concern has expressed its “disappointment” that the sports star has signed up to promote the product.

The charity said that the move would send mixed messages to children.

“It’s incredibly disappointing that David Beckham, a global icon who has wide appeal to children has chosen to use his sports star image to promote spirits,” said Emily Robinson, deputy chief executive of Alcohol Concern.

“Given David Beckham’s other roles promoting sport and a healthy lifestyle to children, we believe this will send a confusing message to them about the dangers of alcohol and its impact on a healthy lifestyle and we call on the star to rethink his association with this product.”

In a press notice launching the product, David Gates, Diageo’s global head of premium core spirits, said: “David Beckham and Simon Fuller are renowned for breaking boundaries and shaking up markets in every sector in which they work. We are immensely proud to partner with them on our first large scale grain whisky innovation.”

Beckham added: “The House of Haig has a rich history and I’m proud to be working at the heart of a home-grown brand which has built an incredible heritage over 400 years. Working closely with Diageo, we look forward to collaborating on Haig Club, valuing and treasuring the Haig traditions while reinventing this whisky for years to come.”

Mr Fuller added: “This is a long term commitment. It is important to us that we create something unique and of great quality. With Haig Club we have an opportunity to push boundaries and help shape how Scotch will be perceived in the future, it’s an exciting proposition.”

In response to the comments from the charity, a Diageo spokeswoman said: “Diageo and David Beckham take our responsibility in this area very seriously. As well as abiding by all laws and industry codes, Diageo has our own, very stringent, guidelines on responsible marketing of our brands.

“David will lead the promotion of the responsible drinking programme for Haig Club, which is at the heart of the brand and we could not ask for a stronger ambassador for the campaign.

“We have always been completely clear in our view that alcohol should only be consumed by adults and we do not want underage drinkers as consumers.”

Diageo, Beckham and Fuller to launch Haig Club single grain whisky

09 April, 2014

Diageo will launch Haig Club single grain scotch, in partnership with David Beckham and British entrepreneur Simon Fuller.

Haig Club, which will launch later this year, is a new innovation from the House of Haig, Scotland’s oldest grain whisky producer and makers of Haig Blended Scotch and Dimple Scotch.

The launch follows William Grant and Son's 100% grain whisky release, annnounced last year.

Working alongside Diageo, Beckham and Fuller will play “a fundamental role” in developing the brand, its strategy and positioning. Beckham will also lead the promotion of a responsible drinking programme for Haig Club.

Whisky authority Dave Broom is one of the few to have tasted Haig Club. He described it as “a hugely versatile spirit, and I expect bartenders will love what they can do with it. Forget everything you thought you knew about Scotch.”

Haig Club is made from whisky from three cask types to create, said Diageo, “a fresh, clean style that showcases butterscotch and toffee for an ultra-smooth taste that the company believes will be enjoyed not only by current whisky drinkers, but also by those who have always wanted to try whisky”.

David Gates, Diageo’s global head of premium core spirits, said: “Whisky is experiencing a continued global renaissance and like many of the world’s most respected whisky experts, we believe this will be the year that grain whisky breaks into the mainstream and gains the recognition it deserves.

“Diageo has a proven track record in Scotch Whisky innovation and we have applied this expertise through the House of Haig in liquid development and craftsmanship, creating a sophisticated new whisky in Haig Club.

“David Beckham and Simon Fuller are renowned for breaking boundaries and shaking up markets in every sector in which they work. We are immensely proud to partner with them on our first large scale grain whisky innovation.”

Beckham said: "The House of Haig has a rich history and I’m proud to be working at the heart of a home-grown brand which has built an incredible heritage over 400 years. Working closely with Diageo, we look forward to collaborating on Haig Club, valuing and treasuring the Haig traditions while reinventing this whisky for years to come.”

Simon Fuller added: “This is a long term commitment. It is important to us that we create something unique and of great quality. With Haig Club we have an opportunity to push boundaries and help shape how Scotch will be perceived in the future, it’s an exciting proposition. We could not wish for a better partner than Diageo.”

Founder John Haig established Cameronbridge Distillery in the early 19^th century, where he pioneered grain whisky production in continuous Coffey and Stein stills – an invention which laid the foundations for the growth and success of the modern Scotch whisky industry, according to Diageo.

Diageo announces Haig Club global launch

06 October, 2014

Diageo has announced the worldwide launch of its single grain scotch whisky Haig Club.

Haig Club, which is a collaboration between Diageo, David Beckham and Simon Fuller, will now be available in bars, restaurants and retail stores in the UK.

To celebrate the global launch of Haig Club, Beckham and business partner Fuller hosted an exclusive Haig Club weekend in the heart of Scotland on the outskirts of Edinburgh.

“I am incredibly proud to have been part of the creation of Haig Club, “ Beckham said.

“I think we have made something really special. For me it has meant understanding how whisky is made and enjoyed and then working with some incredible people to write a new chapter for Haig

Published 15/04/2014

Spirits giant Diageo is mounting a £1.1 billion bid to take control of India’s United Spirits as it seeks to grow its presence in the world’s largest market for whisky.

If successful, the tender offer would see Diageo – owner of Johnnie Walker Scotch whisky, Smirnoff vodka and Tanqueray gin – owning almost

54.8 per cent of India’s largest spirits maker, which was previously controlled by tycoon Vijay Mallya.

Diageo, led by Indian-born chief executive Ivan Menezes, below right, already controls almost 28 per cent of United, owner of the Glasgow-based Whyte & Mackay business that includes the Fettercairn, Invergordon and Jura distilleries.

The acquisition of that stake in November 2012 triggered an investigation by competition regulators, which led to Diageo putting the bulk of Whyte & Mackay up for sale last year.

Those said to be interested in buying the business include Stolichnaya vodka owner SPI Group and private equity firm Lion Capital, which is understood to have teamed up with former Whyte & Mackay chief executive John Beard.

Italy’s Campari, which today agreed a €103.8m (£85.6m) deal to acquire liqueur maker Fratelli Averna, has also been tipped as a bidder.

Diageo declined to comment on progress over the sale, which is being handled by United. Second-round bids are due tomorrow and it is believed the business could fetch about £350m.

Indian whisky drinkers get through about 150 million nine-litre cases a year, making the subcontinent the world’s largest market in volume terms, and Diageo is keen to increase its presence in a region where consumer incomes are rising.

Scotch exports account for just 1 per cent of India’s whisky consumption, which the Scotch Whisky Association blames on “exorbitant” duties. Export values grew 11.5 per cent to £68.7m last year, according to the trade body.

Diageo is paying a premium of

22.5 per cent on the price it last bought United shares, on 31 January, and said it would fund the purchase through existing cash resources and debt.

Chief financial officer Deirdre Mahlan said: “We do think that it will be a successful transaction.

“This price is also at an attractive premium to the market price and we believe that it creates a unique opportunity for investors to be able to monetise their investments.”

Shore Capital analyst Phil Carroll, who has a “hold” rating on Diageo’s shares, said the deal was expected to deliver enhanced earnings in the year ending June 2016.

He added: “Overall, this comes as no surprise and it highlights to us the extent that Diageo wants to tidy up this deal, which has been rolling on longer than initially expected.”

Diageo, which reported a 1 per cent rise in first-half operating profits to £2bn in January despite a dip in sales, is due to update investors on trading for the third quarter tomorrow.

Menezes, who took over from long-standing chief executive Paul Walsh in July, is aiming to trim £200m off the group’s costs to invest more in global advertising and marketing of its products.

Diageo opens £1.5m brand archive

11 June, 2014

Diageo has opened a £1.5m archive for its major brands in Menstrie, Scotland.

The Diageo Archive, which include the likes of Johnnie Walker, Tanqueray, Baileys and Smirnoff, has been expanded to store over half a million items including vintage advertisements and film and industry accolades from the last four centuries.

The collection, curated by a team of professional archivists, is claimed to be the largest alcohol archive in the world, with documents from 150 countries supporting 1,500 brands and nearly 200 production sites.

David Gates, Diageo’s global head of premium core spirits, said: “In a world where people are making purchase decisions based on brand authenticity we have access to an unparalleled wealth of heritage that underpins our brands as category leaders.”

“It is as fundamental to the business today, as it was when first built and continues to establish credentials, support global initiatives and set cornerstones for iconic brands such as John Walker & Sons Odyssey and Jonnie Walker Blue Label

Diageo completes tender offer of USL

02 July, 2014

Diageo has completed its tender offer for a further 26% share in United Spirits.

The company has accepted the tender of 37,785,214 shares in United Spirits (USL) at INR 3,030 per share.

Diageo will have a total interest of 54.78% in United Spirits and expect to fully consolidate the results of USL from today.

Ivan Menezes, chief executive of Diageo, said: “Our announcement today is significant for Diageo. India has now become one of Diageo’s largest markets and will be a major contributor to our growth ambitions.

“USL is the leading player in the attractive Indian spirits market with great brands, a unique route to consumer and talented people. We can now combine that strong platform with Diageo's strengths to create a compelling future in India for Diageo, USL and the Indian spirits industry.”

Diageo releases ‘special’ single malts

01 November, 2010

Diageo has launched its autumn Special Release Series, a collection of single malt scotch whiskies aimed at the world’s top bars and whisky connoisseurs.

Diageo’s nine-expression range, drawn from the group’s 28 single malt distilleries, has been released “in time for end of year celebrations”.

First introduced in 2001, the Special Release Series is the result of an examination of the distilleries’ stocks of “old, rare or unusual single malt whiskies”.

Dr Nick Morgan, spokesman for Diageo, said: “Some of these single malts are priced accessibly. Others, inevitably given their age and rarity, are very expensive.”

Of the range, two expressions have been drawn from the diminishing stocks of closed distilleries, while others are taken from those still in production.

Morgan said: “We know some people buy them as investments. But all are engaging, distinctive single malts made for enjoyment now, and of course in the case of Brora [30-year old] and Port Ellen [31-year old] they will never be made again.”

Also among the range are the Speyside expressions Auchroisk (20-year old), Glen Spey (21-year old) and Cragganmore (21-year old); Ise of Skye whiskies Talisker (30-year old), Lagavulin (12-year old) and Caol Ila (12-year old); and Glenkinchie (20 year-old) from the Lowlands.

The range is available in “most markets in Europe” and “selected global duty free outlets”, while all but the Brora and Port Ellen will be available in the US

Diageo invests £10m in Stauning Danish whisky

06 December, 2015

Diageo will invest £10m in Danish whisky brand Stauning through its Distill Ventures programme.

The first ‘major’ growth investment will facilitate the expansion of Stauning’s distillery in Denmark.

The company's production process of malting in-house and distilling in small stills will continue, with the number of stills expanding from four to twenty, allowing Stauning to increase its current production capacity from 15,000 litres per year to 750,000 litres per year.

In addition to the capital investment, Diageo and Distill Ventures will support the founders of Stauning as they scale production and plan their growth in export markets.

Stauning Whisky was created in 2015 by nine friends who started making whisky as a hobby.

Alex Munch, co-founder Stauning, said: “We can’t wait to build the distillery of our dreams and are excited to be making more of the whisky we love and sharing it with the world.”

Frank Lampen, co-founder of Distill Ventures, added: “This deal represents a step change in the scale of investments Distill Ventures is undertaking. When we find outstanding businesses, we can fund major capital projects and investment in stock as we are in this case. Our focus is on helping entrepreneurs to realise their vision and we are delighted to be working with Stauning, as they scale their business and take their great whiskies beyond Denmark."

Distill Ventures evaluates hundreds of businesses each year across the world. The programme began discussing a possible investment in Stauning in summer of 2014
06 November, 2014

Diageo has unveiled this year’s Special Release scotch whiskies.

They comprise: Benrinnes 21 year old, Brora 35 year-old, Caol Ila 15 year old (unpeated), Caol Ila 30 year old, Clynelish Select Reserve, Cragganmore 25 year old, Lagavulin 12 year old, Port Ellen 35 year old, Rosebank 21 year old, The Singleton 38 year old and Strathmill 25 year old.

The Benrinnes 21YO (56.9% abv) is £240 for the 2,892 bottles.

The Brora 35YO is 48.6% and costs £1,200 for one of the individually number 2,964 bottles.

Caol Ila 15YO (60.39%) is £75 (limited availability).

Caol Ila 30YO (55.1%): The oldest Caol Ila ever released, 7,638 bottles: £425.

Clynelish Select Reserve (54.9%), 2,964 bottles: £500.

Cragganmore 25YO (51.4%), 3,372 bottles: £299.

Lagavulin 12YO (54.4%), limited availability: £80

Port Ellen 35YO (56.5%), the oldest Port Ellen release: £2,200

Rosebank 21YO (55.3%), 4,530 bottles: £300

The Singleton 38YO (59.8%), 3,756 bottles: £750.

Strathmill 25YO (52.4%), 2,700 bottles: £275.

Diageo to swap Bushmills for control of tequila Don Julio

03 November, 2014

Diageo has agreed the full global ownership and control of tequila Don Julio with Casa Cuervo in exchange for Bushmills.

The move will result in the early termination of Casa Cuervo’s production and distribution agreement for Smirnoff in Mexico. In turn, Diageo has reached an agreement to sell Bushmills to Jose Cuervo overseas.

The transaction is expected to result in a net payment of $408 million to Diageo upon completion, which is expected in early 2015. The company says the transaction is expected to be economic profit break-even in year 3 assuming a WACC rate of 9%.

Ivan Menezes, Diageo chief executive, said: “This transaction delivers two key objectives for us. We have secured our position in the growing super and ultra-premium segments of the tequila category and further strengthened our global footprint by expanding our leading position in Mexico where the growth of spirits has great potential.

“Diageo has realised this opportunity through the breadth and depth of our portfolio. It delivers our strategy: to build our presence in the world’s fastest growing markets and lead the industry in the biggest growth opportunities. I am delighted we have reached this agreement,” said Menezes.

Smirnoff volume and net sales in Mexico in the year ended 30 June 2014 were 285,000 cases and £9 million respectively. Bushmills volume and net sales were 800,000 cases and £57m in the same period.

Diageo GTR launches three 'exceptionally rare' Scotch whiskies

26 October, 2015

Diageo has unveiled three “exceptionally rare” single malt Scotch whiskies for Travel Retail.

Port Ellen 33 Years Old and Gragganmore 43 Years Old will exclusively be available in travel retail outlets. Royal Lochnagar 36 Old will be available - in limited release - outside this channel.

Peter Fairbrother, global marketing director of Diageo Global Travel and Middle East, said: “We are investing in our amazing range of Single Malts to drive growth in the Scotch category in Travel Retail.

“These Single Malts are some of the rarest, most distinctive and most valuable whiskies in the world. The exclusivity of these whiskies cannot be overstated as only a few hundred bottles of each exist.”

Royal Lochnagar 36 Years Old carries an RRSP of US$5,550 and Port Ellen 33 Years Old has an RRSP of US$7,020. Cragganmore 43 Years Old is available for an RRSP of US$3,800.

Diageo GTR launches three 'exceptionally rare' Scotch whiskies

26 October, 2015

“These Single Malts are some of the rarest, most distinctive and most valuable whiskies in the world. The exclusivity of these whiskies cannot be overstated as only a few hundred bottles of each exist.”

Royal Lochnagar 36 Years Old carries an RRSP of US$5,550 and Port Ellen 33 Years Old has an RRSP of US$7,020. Cragganmore 43 Years Old is available for an RRSP of US$3,800.

Diageo has unveiled three “exceptionally rare” single malt Scotch whiskies for Travel Retail.

Port Ellen 33 Years Old and Gragganmore 43 Years Old will exclusively be available in travel retail outlets. Royal Lochnagar 36 Old will be available - in limited release - outside this channel.

Johnnie Walker has launched Masters of Flavour, the third and final whisky in the Johnnie Walker Masters series.

All of the whiskies used to create Masters of Flavour are aged for at least 48 years and only 288 bottles will be released.

ating to craft a Scotch that pays tribute to each of the four main steps in whisky making - malting, distilling, cask maturation and blending - to shine a light on how each craft contributes something very special to the extraordinary flavours that Scotch has to offer, from grain to glass,” said Jim Beveridge, Johnnie Walker master blender.

The blend, created in collaboration with malt master Donna Anderson, cask master James Carson, and distillation master Douglas Murray, will be one of Beveridge’s final releases before he retires at the end of the year.

“By nurturing close relationships with malt, distillation, and cask masters throughout Scotland, a blend master contributes to creating a unique collaboration of craftmanship in service of making exceptional Scotch, these are relationships that we have nurtured through 30 years of working in whisky. It’s an honour to pay tribute to those experts,” said Beveridge.

The previous releases in the Masters series have been Johnnie Walker Master’s Ruby Reserve, a celebration of Jim Beveridge’s 30 years working in whisky, and John Walker Masters’ Edition, a whisky crafted using Scotch aged for a minimum of 50 years from distilleries that were operational during the lifetime of Johnnie Walker founder John Walker.

Johnnie Walker Masters of Flavour has an abv of 41.8% and a £20,000 rrp in the UK

Diageo launches “Elusive Expressions” 2022 special releases whisky collection

29 September, 2022

Diageo has unveiled its Elusive Expressions special releases scotch whisky collection, hand-selected by master blender Dr Craig Wilson.

The collection of eight aged and finished whiskies experiments with extended secondary maturation techniques and new cask finishes including Tawny Port and Red Muscato casks.

Dr Wilson said: “Today we reveal and introduce Elusive Expressions, a collection with flavours and finishes that redefine what cask-strength whiskies can be. From rich to rare flavours, each one is brought to life with new energy. Featuring some of our oldest whisky dynasties, we’ve embraced the flavour contrasts that exist within the collection, to create an unexpected whisky experience.”

Illustrator Ken Taylor has returned this year with his signature style and is joined by fellow digital visualisation artist Kevin Tong, as they partnered to create designs that fuse fantasy, art and whisky.

To accompany the release, The Elusive Expressions Cocktails and Serves book, created by Brand Ambassadors, provides cocktails and serves for the whisky collection so fans can recreate at home.

The 2022 Special Releases collection ranges from 54.2% to 58.5% abv and will be available in limited quantities from specialist Scotch whisky retailers and malts.com from October 1 2022.

MAY 18, 2022 With news of the constant churn of distillery manager jobs in Scotch whisky, industry veteran Dr Nick Morgan takes a look at the history of the role, and how it has gone from job for life to gun for hire.

Lagavulin Distillery has found a new distillery manager, and whilst wishing him all the best in his new role, it has to be hoped that he lasts a bit longer there than the last two incumbents. Time was when a distillery manager’s role was a posting for life, or at least for seven to ten years. And in larger companies with multiple malt and sometimes grain distilleries too, it was unusual for managers to leave the corporation, even if they might rotate around its sites.

Not it seems any longer. In 2018 Diageo announced it had ‘appointed three of the most coveted jobs in the Scotch whisky industry’ at Port Ellen, Lagavulin and Brora, and yet within a few years each of the successful candidates had moved elsewhere, leaving these ‘dream jobs for any whisky-maker’ behind. What is it about the role of today’s distillery managers at large companies that might makes some turn their backs on dreams in order to embrace a preferred reality? Single malt marketeers used to like to put distillers at the heart of their brand stories, but are they still at the heart of the whisky their distilleries produce? What’s changed in the role of a distillery manager, when, and why?

Pierrick Guillaume left his dream job on Islay to make whisky in France

A short history of distillery managers

The large, complex, and highly capitalised Lowland distilleries of the late eighteenth and early nineteenth centuries, often with absentee owners, quickly adopted strictly hierarchical management structures. However, in the Highlands the newly-licensed distilleries of the 1820s, often former illicit operations, worked by early proprietor-managers (like John Cumming at Cardhu) struggled to achieve both quality and consistency as they sought to commercialise their pre-industrial operations. Cumming’s spirit was of such a variable character that his agent in Edinburgh (his brother) complained bitterly about his inability to manage the production of whisky properly. It was so poor, he said, that he had to ‘cover it’ with other makes before it could be sold (an early origins of blending story). Distilleries such as these only slowly transitioned into management by a new and highly accomplished managerial class by the middle of the century.

Accomplished though they were, these men were first and foremost practical distillers, with skills and secrets learned on the job, very often from fathers, uncles and brothers. Few could match the family of John Smith, who worked on his father’s farm in Glenlivet before following his brother to George Smith’s Upper Drumin Distillery, where he learned the trades of malting, mashing and fermenting. This ‘far famed brewer’ had six sons who ‘seemed to possess naturally the distilling faculty of their father’. The most famous were John Smith, like his father a graduate of Glenlivet distillery and later head brewer and manager there, and his younger brother George who also began his career under the tutelage of his father. John was a giant of a man (‘he turned the beam at 26 imperial stone’) famed for Cragganmore Distillery which he established in 1869, but it was George who was the giant of distilling. Having honed his craft at distilleries from Aberdeen to Argyllshire, he was appointed brewer and manager at Royal Brackla in the late 1860s where the owner Robert Fraser ‘gave him carte blanche powers as to the improvement of the buildings and machinery’. When George Smith died [in 1927] one obituarist wrote ‘his lifelong experience in distilling gave him a knowledge of the art which few men possessed’.

Masters of their own destiny

Men like Smith, who transformed the production of malt whisky in the second half of the nineteenth century, were masters of their own destiny with wide-ranging responsibilities that would gradually be diminished for most distillery managers, particularly in the second half of the twentieth century. They led the expansion of an industry where output increased from around 14 million proof gallons in 1870 to over 30 million at the turn of the century. They also pioneered the introduction of technology like pneumatic maltings, mashing machines, refrigerators, steam-heated stills, and condensers and purifiers (the last two of which would have a profound impact on spirit character) in new distilleries and old. They were responsible for purchasing raw materials, and very often for selling (on a commission basis) their yearly output. They would have been known from the barley fields of Banff to the breweries and blending rooms of Britain’s major cities, making annual sorties south at the start of each distilling season.

‘Everything’ said one critic of the management of late nineteenth century distilleries, ‘is entrusted to the workmen, the head of the establishment who generally has no scientific knowledge giving directions’. But what these managers may have lacked in scientific knowledge they made up for with their practical experience and learned technical skills. To proprietors they were indispensable.

At the end of the first world war, John Walker & Sons was desperate to have two men returned to them from wartime service. One was marketing director Sir James Stevenson who had worked in the Ministry of Munitions, the other was Cardhu distillery manager William Fraser, who was serving in the Royal Corps of Signals. “There is a great deal to be seen to which Fraser alone knows about’ wrote John Cummings to Stevenson, who while unable (and quite possibly unwilling) to quit working for Winston Churchill was able to employ his considerable influence to get Fraser back to Cardhu, and the distillery back in operation in the autumn of 1919.

Demoted to the lower decks

Fraser remained as manager until 1933, when he spent a further seven years as ‘overseer’ of both Cardhu and Mortlach distilleries. His career was to witness the start of the emasculation of the traditional all-encompassing role of the distillery manager, brought about by the rationalisation of malt whisky production within the newly expanded Distillers Company (DCL) under the oversight of Scottish Malt Distillers (SMD), which by 1935 owned or managed 51 distilleries.

At the helm of this unwieldy fleet of over fifty distilleries in the 1930s and 1940s was Stuart Hastie, war hero, chemist, fermentation expert and passionate advocate of an interventionist centralised control of malt whisky distilling where science was to rule over the waves of tradition. And with Hastie at the helm, with an officer’s mess of regional distillery inspectors, scientists and technocrats, distillery managers found themselves demoted to the lower decks. Raw materials (barley, yeast and casks) were purchased centrally, upgrades and expansions were determined and managed from the SMDs office in Edinburgh in conjunction with the DCL’s General Works Department, and the final arbiters of quality were the blending departments of the main brand-owning companies within the DCL. Distillery managers were still figures of considerable local importance in the communities in which they worked and lived, and their general managerial and technical skills were still highly valued but in this new corporate structure they were mere ciphers compared to their late Victorian and Edwardian whisky-making predecessors.

The changing industry

Nor was this approach confined to the DCL. Whilst few turned their backs on the company’s generous pension scheme, DCL trained managers were best in class, and the few who left took the production philosophy championed by Hastie with them wherever they went. After the second world war as new capital and new holding companies began to challenge the DCL’s supposed pre-eminence, the centralised distilling operating model it had developed, with specialists back-rooms attending to all the technical, scientific and quality issues, was adopted by all. One leaver was John McDougall, who turned his back on ‘the nannying culture of the DCL’ to manage Balvenie for William Grant & Son’s before joining Long John Distillers in 1970 to manage Laphroaig, where he was told, he would be ‘king of your own domain … you can go walking or shooting, or you can take the afternoon off and play golf when you want’.

Long John Distillers was owned by the expansionist Schenley Industries of New York. The distillery, ‘a series of ramshackle old stone buildings’, ‘certainly wasn’t hi-tec in fact … it wasn’t even low-tec, more no-tec at all’; it had suffered from a lack of investment, had very low spirit yields, but ‘did have that magical ingredient of the personal touch’. A highly invested workforce however, made change particularly difficult to effect. At the end of the day it was neither McDougall nor his workforce, but the engineers and accountants at Long John who determined the distillery’s destiny. When the stillhouse was upgraded in 1972, rather than pay for two new spirit stills they installed one double-sized spirit still, very much against the manager’s wish. ‘From the point of view of the traditionalist’, wrote McDougall, ‘what emerged was not the Laphroaig of old’. ‘Economic considerations’, he continued ‘mattered more than maintaining the quality and tradition of one of Scotland’s finest and most distinctive whiskies’, and certainly mattered more than the opinion of the enervated distillery manager.

Manufacturing excellence processes

Ask a distillery manager employed today by one of the large distilling companies about his or her day job and you’re more likely to hear about manufacturing excellence processes, health and safety regulations, permits to work, efficiency improvements and boiler breakdowns than you are whisky making.

That’s not to suggest that these companies don’t care about quality – quite the reverse. They are obsessed by quality. Everything they do is to deliver precisely defined and specified spirit characters, and to ensure consistency. And whilst the manager has some responsibility for this, like a process engineer manufacturing Bird’s Eye Fish Fingers, it’s all determined, assessed and ultimately managed elsewhere. It’s the blenders and the boffins who call the shots. The totemic distillery manager of yesteryear, still much beloved by marketing departments, PR agencies and gullible consumers, is no more, and has been no more for a long time.

Distilling disruptors

Of course, that’s not entirely true. There are new distilleries the length and breadth of the kingdom where the onus is on the distillery manager and distiller (not always the same thing) to deliver innovations through grain varieties, yeasts, and distillation and maturation regimes. And they are often being asked to bring palatable products to the market at ages that turn category norms upside down. They are distilling disruptors. It’s almost wilfully reckless: anything goes (within the Scotch Whisky Regulations) in the pursuit of an eye-catching story that might tempt a punter to open their wallets. Why, some distillers are even being given the chance to design and build their own distilleries from scratch, just like they did in the good old days.

Where once there were few opportunities for people to enter the distilling industry, challenging opportunities for creative distillery managers to spread their wings are almost endless. Consequently, the lure of the big name ‘dream jobs’ at larger companies is correspondingly diminished. The days of distillery managers being lifers are long gone.

The barriers to movement, particularly the very generous pensions offered by some large companies, have also been removed as schemes have been closed and potential retirement benefits significantly reduced. With the handcuffs unlocked, and with all the noise, energy and excitement in distilling in Scotland apparently coming from these newly established businesses, it’s hardly surprising that people are on the move, trying to turn their dreams into reality.

Islay distillers face peated malt shortages

OCTOBER 12, 2022

There’s no need to panic buy… yet … but there are Islay peated malt shortages on the horizon for the Scotch whisky distillers with Port Ellen maltings especially facing unprecedented demand. Here’s the full story.

It started as a tip-off from an anonymous source on Islay: the supply from Port Ellen maltings to non-Diageo distilleries will be limited in 2023 and may be stopped entirely in 2024. So we did a bit of digging. Robbie Millar from Beam Suntory, owner of Bowmore and Laphroaig, had this to say when we asked him: “We are aware of the Port Ellen situation and have been working to address the consequences of Diageo’s decision to restrict supplies.”

Port Ellen

Demand from Diageo distilleries like Port Ellen means there’s less peaty malt to go round

Peated malt shortages

Then another major distiller in Islay told us: “Diageo has substantially cut all of their external customers for 2023, and I have not yet had a chat with them about 2024, but it is a distinct possibility”. He didn’t want to go on the record but Anthony Wills from Kilchoman was happy to talk: “My understanding is they [Diageo’s customers] have been told from 2024, they will not be able to provide the level of malt they currently get.”

When we put this to Ian Smith, head of corporate relations at Diageo, he said he “would not contradict what you are saying.” He then released the following statement: “We can’t comment on the detail of commercial supply contracts, but it is the case that we have seen significant increased demand for malted barley from our Port Ellen maltings. As a result, the maltings are operating at full capacity and we are managing supply accordingly. We deeply value our relationship with our fellow distillers and customers and are doing everything we can to assist them within the supply constraints, alongside considering potential future solutions.”

GeGeorgie Crawford Elixir Distillers

Georgie Crawford from Elixir distillers

Unprecedented demand

The problem is that demand for peated malt from Port Ellen maltings from Diageo’s Islay distilleries is at an unprecedented level. Caol Ila was shut for much of the pandemic – now it’s back to seven days a week. Combine that with the resumption of distilling at Port Ellen for the first time since 1983 and the continued demand for Lagavulin, and you have a problem. There was talk in the past of expanding capacity at Port Ellen maltings but for whatever reason it never happened. Georgie Crawford, formerly of Port Ellen and Lagavulin distilleries, and now at Elixir on Islay said: “It was foreseeable, everyone saw it coming yet Diageo took the option not to expand.” Another Islay distiller said, off the record, “they should expand. Why haven’t they?”

He continued that it’s not just an Islay thing: “Overall malting capacity is an issue. It’s creaking at the seams.” Anthony Wills from Kilchoman said “Securing malt supply for malt next year is incredibly difficult. Across the industry, there’s a squeeze.” According to Wills, Bairds malters has just added 57 tonnes of capacity while Simpsons is seeking planning permission for new maltings at Speyside. “Everyone is at full capacity,” he added. Malt supply was further hampered by a fire in the peated kiln at Crisps in Portgordon.

Peated malt shortages

Malt: there’s just not enough of it being made to meet demand

Logistical difficulties

One large Scottish maltster told us that it is not taking on any more customers: “the amount of enquiries we are having to walk away from, it’s more than I have seen in the last 30 years.” With all the expansion going on, he added, “the industry is in a tight spot.” He said that both Glenmorangie and Beam Suntory had come to him for malt. He hopes that the demand will encourage Diageo and other maltsters to expand. The Islay problem is particularly acute because even if distillers can secure supplies from the mainland, the island’s creaking transport infrastructure based around CalMac ferries make getting it there difficult. Currently, CalMac doesn’t have the capacity to accommodate the additional freight that would be required. Plus the fact that many distilleries depend on specifically Islay malt for their flavour profile, and their marketing. Not all peated malt is the same. According to Anthony Wills, Laphroaig alone needs five or six loads of malt per week, each one weighing in at around 28 tonnes. That’s a pretty hefty carbon footprint if it was all to come from the mainland.

It seems this malt shortage isn’t just a Scottish or even a British problem. Apparently, energy shortages in Germany have meant that some maltsters have had to shut down entirely. Never mind a whisky shortage, what happens if there’s a European beer shortage? And winter is coming. Maybe it is time to panic a little.

By 2015 Diageo revealed plans to grow The Singleton as a single malt brand in its own right, to take on the might of The Glenlivet and Glenfiddich which jointly held the title of world’s biggest malt brand.

The Singleton is actually a threesome of single malts each with a growing family of expressions around a core 12-year-old.

First was Singleton of Glen Ord, Diageo’s ‘green grassy’ malt from the Black Isle which was reserved for Asia.

Then came two Speysiders –

The Singleton of Glendullan (fruity, grassy) for the US and Canada, and

The Singleton of Dufftown (nutty, spicy), which was kept just for Europe.

Today all three are available globally in a bid to become the world’s number one single malt brand.

In each case with The Singleton of Glendullan, Dufftown and Glen Ord, the range has been expanded with older expressions and those with no age statement at all.

Examples include Dufftown’s Spey Cascade, Tailfire and Sunray, (Nosing & Tasting (32)

The Singleton Family (1). And launched in 2014 as NAS expressions.

and Glendullan’s Master’s Art that is finished in Muscat casks.

Described as a ‘recruitment malt’, The Singleton has become the key driver in Diageo’s single malt portfolio, flanked by ‘discovery malts’ like Talisker and Oban, and ‘prestige malts’ like Mortlach and the annual Special Releases range.

For a giant with such prominent brands, Diageo is not used to playing catch-up to its smaller rivals, but that is what has happened with single malts.

With a view to redressing the balance, The Singleton range was launched in 2006, starting with Glen Ord, followed by Glendullan and Dufftown 12 months later. The brand’s success led to a major expansion at Glen Ord in 2014 that doubled capacity to 10 million LPA (litres of alcohol per annum).

London Der scheidende Chef des britischen Getränkekonzerns Diageo, Ivan Menezes, ist tot. Der 63-Jährige sei nach kurzer Krankheit gestorben, teilte der Produzent von Marken wie Johnnie Walker, Gordon's Gin, Smirnoff, Guinness oder Baileys am Mittwoch in London mit.

Aufsichtsratschef Javier Ferran sprach von einem „unheimlich traurigen Tag“. „Ivan war seit der Schaffung von Diageo dabei und hat über 25 Jahre Diageo zu einem der leistungsstärksten, vertrauenswürdigsten und angesehensten Konsumgüterunternehmen geformt“, sagte Ferran. Menezes hinterlässt seine Ehefrau und zwei Kinder.

Am Montag hatte das Unternehmen bereits die künftige Vorstandsvorsitzende Debra Crew, die am 1. Juli von Menezes übernehmen sollte, zur Interimschefin ernannt, weil der Top-Manager nach einer Notoperation an einem Magengeschwür einen schweren Rückschlag erlitten hatte.

Menezes gehörte zu den am längsten amtierenden Chefs eines im britischen Aktienindex FTSE notierten Unternehmens. Er kam 1997 zu Diageo, als der Konzern durch die Fusion von Guinness und Grand Metropolitan entstand

08 June, 2023

Chief executive officer of Diageo, Sir Ivan Menezes, has died at age 63 after a brief illness.

Following treatment for a medical condition, Menezes’ recovery suffered a “significant setback”, which led to emergency surgery on a stomach ulcer.

Diageo has appointed Debra Crew as interim CEO, with immediate effect, ahead of her appointment to the role on 1 July, as Menezes planned to retire on 31 June after 10 years leading the company as CEO.

In a statement, Diageo said Menezes had family by his side. Javier Ferrán, chairman of Diageo, said: “Ivan was undoubtedly one of the finest leaders of his generation.

“Ivan was there at the creation of Diageo over 25 years ago and shaped it to become one of the best performing, most trusted and respected consumer companies,” Ferrán added.

Diageo said Menezes was “one of Britain’s longest serving and most respected FTSE chief executives,” as he joined in 1997 at its creation and held a number of roles over his 25 years at the company.

During his time he became global marketing director, UDV, in 1998 and was responsible for developing the ‘Keep Walking’ campaign for Johnnie Walker.

Following this he held several senior positions including chief operating officer, president of Diageo’s North American arm and chairman roles for Diageo Asia Pacific, Latin America and the Caribbean.

Menezes was appointed to the board as an executive director in July 2012 and served as CEO since July 2013.

Having navigated the Covid-19 pandemic, Menezes delivered the company with net sales value 36% larger than in 2019.

Menezes also championed diversity, with the company today having over 40% of its senior leadership positions held by women, while 37% are ethnically diverse.

Diageo said that during Menezes’ time as CEO, he oversaw an “outstanding period of change, growth and high performance,” as it now sells over 200 brands in more than 180 markets.

Diageo holds the position as the number one company by net sales value in Scotch whisky, vodka, gin, rum, Canadian whisky, liqueurs, and tequila, according to IWSR Drinks Market Analysis data.

The company’s portfolio includes brands such as Smirnoff vodka, Johnnie Walker, Gordon’s gin and Guinness, which Menezes saw rank the number one selling beer by value for the first time in Great Britain’s on-trade, in December 2022.

In January of this year, Menezes received a knighthood for services to business and equality in the King’s 2023 New Year Honours List.

Menezes is survived by his wife Shibani and his two children.

Diageo has announced that its chief executive officer Sir Ivan Menezes will be retiring and is set to depart from the Diageo Board on 30 June this year, following 10 years leading the company.

Debra Crew, the current chief operating officer, will be appointed as CEO and will join the board, effective 1 July 2023.

“It has been an enormous honour leading Diageo over the past decade. I am extremely proud of what we have achieved during that time. I am delighted to be handing over the reins to Debra. In the time that we have worked together, I have been consistently impressed with her passion for growth and for building high performing teams,” Menezes said.

Menezes joined Diageo through the merger of Guinness plc and Grand Metropolitan plc in 1997 and has held a number of senior positions in the business including COO, president of Diageo North America, chairman of Diageo Asia Pacific and Diageo Latin America and Caribbean.

Menezes has been an executive director of Diageo since July 2012 and has served as CEO since July 2013. In January 2023, Menezes was awarded a Knighthood for services to business and equality in His Majesty The King’s 2023 New Year Honours List.

Crew said: “Ivan leaves Diageo in a very strong position for future growth and I look forward to working with our teams around the world to capture the opportunities ahead. I am focused on continuing Diageo’s track record of building world-leading brands and enhancing our reputation as one of the most responsible businesses in what I believe to be the most exciting consumer products category. It is an incredible privilege to be leading Diageo through the next phase of its development.”

With Crew’s appointment as CEO, women will make up more than 50% of Diageo’s executive committee from 1 July 2023.

Prior to being appointed COO in October 2022, Crew was president of Diageo North America and global supply. Crew originally joined the Diageo Board as a non-executive director in April 2019, before stepping down from the board when appointed president of Diageo North America in July 2020.

Diageo has announced that Singapore-based consumer group Tolaram is set to acquire Diageo’s 58.02% shareholding in Guinness Nigeria.

The deal will see Diageo enter a new partnership with Tolaram in which Diageo will retain ownership of the Guinness brand but license it to Guinness Nigeria for the long-term.

Guinness Nigeria will also continue to have manufacturing and distribution rights for the other Diageo brands that it currently manufactures.

“Guinness has been Nigeria’s favourite beer for nearly 75 years,” said Diageo chief executive Debra Crew.

“Tolaram share this passion for Guinness and for Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country.”

Dayalan Nayager, president Diageo Africa and chief commercial officer continued: “Our flexible, asset-light, beer operating model is working well in other markets, and we will unlock the full potential of Guinness in Nigeria with our new, long-term partner Tolaram.”

Diageo says its asset-light beer operating model allows it to “select the most appropriate structure and route to market for Guinness based on local conditions while retaining ownership of the iconic Guinness brand”. In Tolaram, it has a partner with five decades of presence in the African consumer packaged goods industry.

“Our partnership with Diageo to jointly grow Guinness Nigeria underscores our commitment to build on our strong presence and heritage in Nigeria, cultivated over decades of dedication and unwavering confidence in the future of Africa,” said Sajen Aswani, chief executive at Tolaram.

“We take a long-term view on all our investments and this partnership reflects our optimism on the exciting opportunities that lie ahead across the continent.