Diageo and SWA settle row over pure' Cardhu

by John Harrington A compromise has been reached between the Scotch Whisky Association (SWA) and Diageo in the row over the "pure malt" marketing of its Cardhu brand. The move could lead to clearer definitions of what constitutes different types of Scotch whisky. Diageo was criticised by the Scotch whisky industry for labelling Cardhu, a vatted whisky, from "single" to "pure malt", as it undermined the integrity of the category. However, the council of the SWA agreed last week to allow Diageo to keep the Cardhu name and pure malt tagline. In return, Diageo agreed to change the colour of the labels and packaging from brown to green, and to carry out "extensive promotional activity" to explain the nature of the brand to consumers and the trade. Diageo also agreed to work with the council to devise clearer industry definitions for different segments of the Scotch whisky category. Jonathan Driver, head of malt whisky for Diageo, said the change represented a "big gamble" for the company from a marketing perspective, despite being able to keep the Cardhu name. Driver said: "This is a huge step. It tells consumers we have changed. The massive issue here is that historically, we, as an industry, haven't agreed the legal definition for Scotch whisky. "The reason why people are saying the issue is over is because we have decided to come up with a robust definition." SWA spokesman David Williamson said: "The [SWA] council agreed that it is best for the industry as a whole to ensure there is no consumer confusion with new products. This case has shown the need for clearer definitions." Last month, senior directors from Scotch whisky companies wrote to Diageo and the SWA over Diageo's labelling of Cardhu. Diageo added: "We acknowledge that we might have managed our consultation process with the SWA executive more effectively, and for that we are sorry.