Diageo

Every day, all around the world, millions of people enjoy our products. We have an outstanding portfolio of world-famous food and drinks brands which we market in more than 200 countries around the world. They include Smirnoff, Johnnie Walker, J&B, Gordon's, Guinness, Pillsbury, H&aumlèn-Dazs, and Burger King. We manage our brands through four world class businesses which share a common purpose--creating value for shareholders through consumer enjoyment. 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. United Distillers & Vintners (UDV) is the world's leading spirits and wines company with such brands as Smirnoff vodka, Johnnie Walker and J&B whiskey, Gordon's and Gilbey's gin, and Baileys liqueurs--in all, a full quarter of the top 60 international liquor brands. Pillsbury is a global food giant boasting four megabrands: Pillsbury dough, baking, and baked products; H&aumlèn-Dazs ice cream and frozen yogurt; Green Giant vegetables; and Old El Paso mexican food products. Guinness is one of the largest brewers in the world. Led by the flagship Guinness brand--the world's number one stout beer--the brewer's other brands include Harp lager, Kilkenny Irish Beer, and Kaliber alcohol-free lager. Diageo's fourth business is Burger King, the second largest hamburger chain in the world (after McDonald's). Among the company's smaller operations is Guinness Publishing, which puts out the renowned Guinness Book of Records. Diageo also holds a 34 percent stake in the Moët Hennessy champagne and cognac division of LVMH Moët Hennessy Louis Vuitton S.A., a French luxury-goods and drinks giant. In turn, LVMH owns 11 percent of Diageo. Diageo's history begins with the formation of the Guinness empire. In 1759 Arthur Guinness, an experienced brewer, leased an old brewery at James Gate in Dublin. Besides renting the brewery Guinness signed an unusual 9,000-year lease for a mill, storehouse, stable, house, and two malthouses. As it turned out, in just four years significant quantities of ale and table beer were emerging from the new workplace. Soon after the brewery was in full operation, Arthur Guinness began to establish a reputation in both business and civic affairs. The company secured an active trade with pubs in towns surrounding Dublin and also became one of the largest employers in the city. As a vocal participant in public life, Guinness supported such diverse issues as penal reform, parliamentary reform, and the discouragement of dueling. Furthermore, although a Protestant, he strongly supported the claims of the Irish Catholic majority for equality. The business nearly came to an abrupt end in 1775 when a dispute over water rights erupted into a heated exchange between Guinness and the mayor's emissaries. The argument centered around the City Corporation's decision to fill in the channel that provided the brewery with water. When the sheriff's men appeared at James Gate, Guinness grabbed a pickaxe from a workman and with a good deal of "improper language" ordered them to leave. For fear of escalating violence, the parties to the dispute finally settled by means of a tenant agreement. In 1761 Arthur Guinness married Olivia Whitmore; of the 21 children born to them only 10 survived. Since the eldest son became a clergyman, the thriving company was passed on to the second son, Arthur, after the founder's death in 1803. Like his father, Arthur soon became active in both civic and political affairs. He served in the Farming Society of Ireland, the Dublin Society, the Meath Hospital, and the Dublin Chamber of Commerce. Most importantly, as an elected director in the Bank of Ireland, he played a significant role in settling currency issues. In politics, Arthur adhered to his father's beliefs by advocating the claims of the