Diageo outlines future strategy

By Laurie Macdonald

- Last updated on GMT

Diageo outlines future strategy

Related tags Diageo

Drinks giant Diageo has promised investment and innovation in its premium core and reserve brands in the next year as part of the strategy set out in the company's 2015 Annual Report.

In the UK the firm has cited innovation in the premium core brand category which includes Guinness, Gordon’s gin, Smirnoff vodka and Captain Morgan rum. They have confirmed a new flavour for Pimms Cider cup as the first stage of the strategy.

Against a backdrop of flat net growth worldwide, but good UK growth the multinational drinks company has highlighted premium core spirits and reserve brands as targets for prioritised investment and others spirits, beer and wine are identified for targeted investment.

The report identifies the opportunity as “in Great Britain there is good potential to grow the spirits industry – not by getting people to drink more, but by getting them to drink better.”

To achieve this there will be focus on strengthening and innovating across the premium core category following on from the recent launches of Captain Morgan White Rum, Smirnoff Ice Double Black, the Guinness Dublin and West Indies Porters, and Gordon’s pouches, and the reserve brands after the launch of Haig Club, as the “key to unlocking growth.”

Andrew Cowan, UK managing director of Diageo said: “We recognise that innovation needs to be at the heart of our commercial strategy, and at Diageo we want to grow our business by getting people to drink better, rather than more. Today nearly 13% of our business comes directly from innovation. My goal is that in the next five years innovation will account for twenty percent of our business.”

Related topics Spirits & Cocktails

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