#5
DIAGEO
Diageo, a globally renowned alcoholic beverage company headquartered in London, United Kingdom (UK), was formed in 1997 through the merger of Grand Metropolitan and Guinness.
Holding a vast portfolio of respected brands, Diageo’s rich history extends beyond its founding year, with several of its brands tracing their origins back to the 17th century. Guinness, one of its founding companies, was established in 1759 by Arthur Guinness in Dublin, Ireland. Over the years, Guinness has grown to become one of the world’s most iconic beer brands.
Grand Metropolitan, Diageo’s other founding company, had its roots in the hotel and catering business. It owned several renowned spirits and wine brands, such as Smirnoff Vodka and Baileys Irish Cream. While paying tribute to its heritage, Diageo actively fosters both traditional and contemporary categories, focusing on the creation of genuine, culturally significant brands. According to the company, this process of brand development and expansion demands creativity, conviction, and perseverance.
Today, Diageo operates in more than 180 countries and is known for its wide range of popular alcoholic beverages including Johnnie Walker Whisky, Smirnoff Vodka, Baileys Irish Cream, Tanqueray Gin, and Captain Morgan Rum, among others. Diageo is committed to promoting responsible drinking and has implemented various initiatives to address alcohol-related harm. Diageo has placed a formidable emphasis on matters environmental, social, and governance (ESG). For instance, the brand champions inclusion and diversity, as well as gender mainstreaming, throughout its operations, at the global level and in all geographies.
From the recruitment, development, and retention of diverse talent, to the manner in which services are sourced and diversity is portrayed through its brands, Diageo remains committed to promoting a diverse and inclusive environment. For instance, this commitment is exemplified through the ‘Society 2030: Spirit of Progress’ action plan, which sets ambitious goals aimed at eliminating barriers and generating a positive impact on partners, suppliers, and communities.
In fact, for the third year in a row, Diageo has secured the top spot in FTSE Women Leaders Review, with 63.6 percent female representation at Board level. Also excelling in leadership positions with 42.3 percent female representation, Diageo ranks 17th overall and leads its sector.
Furthermore, Diageo harnesses its ‘Progressive Media’ to champion inclusive values and foster a diverse society through its marketing. It actively supports progressive voices, celebrates diversity, and contributes to the creation of a tolerant society. Diageo acts as a champion for women’s empowerment, providing a platform for marginalised communities, minority groups, people with disabilities (PWDs), combating ageism and colorism through its impactful marketing campaigns.
As an active participant in the United Nations Unstereotype Alliance, Diageo is committed to combating harmful stereotypes in advertising. Additionally, as members of the World Federation of Advertisers’ Diversity and Inclusion Taskforce, Diageo endeavours to contribute to changing the creative industry landscape.
The brand believes in the importance of ensuring that its agencies, content creators, directors, producers, and other stakeholders represent the diverse consumer base it serves. It is Diageo’s responsibility to lead the change. As one of the largest advertisers in the world with buying power to influence the industry, Diageo has the power to drive change.
By leading the change, Diageo gains competitive advantage, as well as enriches the lives of those it serves: the true essence of a customer-obsessed brand.
Moreover, Diageo is actively involved in building an inclusive hospitality sector. Through initiatives like the Diageo Bar Academy, Learning for Life, and other business and hospitality skills programs, the company provides skills training to 1.5 million individuals. In Kenya, Diageo operates through its subsidiary, East African Breweries Limited (EABL), a prominent beverage company in the region that was established in 1922.
Diageo initially acquired a 20 percent stake in EABL in 2000, and has since gradually increased its ownership. In January 2023, Diageo received regulatory approval to acquire an additional 14.97 percent stake in EABL, raising its shareholding to 65 percent. Apart from Kenya, Diageo’s subsidiary, EABL, operates in Uganda, Tanzania, Rwanda, and South Sudan.
Further to its customer-obsessed standards, Diageo is known for its commitment to producing high-quality beverages. It prioritises using locally sourced ingredients and employs rigorous quality control measures to ensure that its products consistently meet the highest standards.
Jane Karuku, the Managing Director (MD) and Chief Executive Officer (CEO), leads EABL with her visionary and transformational leadership. Under her guidance, Diageo in East Africa combines global expertise with a profound understanding of local markets, leveraging Diageo’s deep commitment to consumers and the community it operates in.
