Budweiser Looms Bigger for Diageo than Allied
Diageo’s plans for expansion in the U.S. market means that it is now competing more with beer giant Anheuser-Busch than its traditional rival, number-two spirits and wine company Allied Domecq, according to Paul Clinton, CEO of Diageo North America. He also told Reuters that the company would be looking to reduce the number of distributors it used in the U.S., where it currently holds a 28 percent stake in the liquor market, to a single operator per state. Additionally, Diageo intends to take market share from brewers with its portfolio of RTDs, which includes Smirnoff Ice and the upcoming launch of Captain Morgan Gold.
Moderator Comment: What is your reaction to the statement
made by Diageo North America’s CEO?
Distribution is the name of the game. [George
Anderson – Moderator]