Coronavirus Update: Our team is here to help our clients and readers navigate these difficult times. Visit our Resources page now »

Skip to Main Content

About Diageo North America Inc.

Diageo North America is the North American subsidiary of distiller giant Diageo plc. It markets and sells its parent's collection of premium alcoholic drinks, including name brand spirits, Captain Morgan rum, Crown Royal Canadian whisky, Johnnie Walker Scotch whisky, Smirnoff and Cîroc vodka, and Tanqueray gin, as well as Chalone wines and Guinness beer. Diageo North America owns production facilities in the US and Canada. North America is the parent company's largest market for premium drinks; it accounts for about a third of Diageo's net sales and roughly half its operating profits.

Operations

Diageo North American's three main operating units are US Spirits and Wines, Diageo Beer Company USA, and Canada. By product, about 80% of its total sales came from spirits, with the remainder was split between beer, wine, and ready to drink beverages.

The company's products span all market segments, from ultra-premium (Johnnie Walker Blue Label) down to value brands.

Geographic Reach

From its base in Connecticut, Diageo North America handles its parent's operations in the US and Canada. The company has more than 25 facilities across the US, Canada, and US Virgin Islands in total, including about 10 production facilities.

Sales and Marketing

To reach its customers, Diageo North America works with about 40 spirits distributors and brokers and more than 400 beer distributors. 

Financial Performance

Note: Growth rates may differ after conversion to US dollars. This analysis uses financials from the parent company's annual report.

Diageo North America's revenue has been steadily growing in recent years. In fiscal 2019 (ended June) the company's revenue climbed 8% to £4.5 billion thanks to organic growth of £216 million and exchange rate movements worth £176 million, partially offset by the impact of the disposal of 19 brands to Sazerac (£-48 million).

Operating profits grew 4% to £1.9 billion as higher sales were partially offset by an increase in marketing costs.

 

Strategy

Diageo North America's strategy is to develop technology to improve sales data. Data-driven insights will allow the company to sharpen commercial execution, manage performance, and identify competitive differentiation right the way down to the outlet level.

Diageo is also keen to lift regulatory barriers that put spirits at a competitive disadvantage in North America. Its marketing strategy seeks shift public perception of spirits, which are often described using prohibition-era language like "hard liquor". The company is trying to dispel the myth that beer and wine are "soft" alcohols by comparison and invests in campaigns to educate on the dangers of binge drinking. Compared to beer and wine, spirits are taxed at rates three times higher, allowed to be sold in fewer outlets, and face tighter advertising regulations in the US.

 

Diageo North America Inc.

3 World Trade Ctr
New York, NY 10007-0042
Phone: 1 (212) 202-1800

Firm Stats

Employer Type: Privately Owned
President, Diageo-Guinness USA: Tom Day
President and CEO: Deidre Mahlan
CFO; President, Diageo Canada: Jakob Ripshtein
Employees (This Location): 3,500
Employees (All Locations): 8,040

Major Office Locations

New York, NY

Other Locations

Bentonville, AR
Scottsdale, AZ
Aliso Viejo, CA
Napa, CA
Rutherford, CA
San Francisco, CA
Sonoma, CA
Braintree, CT
Washington, DC
Coral Gables, FL
Chicago, IL
Plainfield, IL
Louisville, KY
New York, NY
Addison, TX
Dallas, TX