Diageo plc · LSE:DGE
Diageo — Investor Presentation (June 2009)
40 slides from Diageo's investor presentation, June 2009
Slide 1: Diageo Marketing Investor Webcast
Diageo Marketing Investor Webcast Andy Fennell Chief Marketing Officer
Slide 2: Brand ages and heritage
Age: Age: Age: Age: Age: 401* 251 190 Age: 35 6 70 Age: Age: 250** 81 Age: Age: Age: 26 260 149 * License granted to distill 401 years ago ** Arthur Guinness signed lease on St James’s Gate Brewery 250 years ago 2
Slide 3: Diageo Brand
DIAGEO @ , DIAGEO Brand QV 7
Slide 4: NSV Growth
NSV Growth = Brand range / Enhance Fundamentals + geographic + efficiency & prioritisation effectiveness 4
Slide 5: Stable consumption over 60 years
Stable consumption over 60 years Litres pa US TBA per cap consumption 1945-2005 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Beer Wine Spirits 5
Slide 6: Guinness has enjoyed consistent long-term growth and has evolved
Guinness has enjoyed consistent long-term growth AND has relentlessly evolved mHl Guinness Extra Smooth 10.5 Guinness 9.0 Draught in Bottle Guinness 7.5 Long Term Volumes 1850 to 2007 Foreign Extra Stout 6.0 4.5 Guinness Draught in Cans Porter 3.0 Guinness Draught Extra Stout 1.5 0.0 1850 1900 1950
Slide 7: The four fundamentals
The four fundamentals Flair Agility Consumer Insight Execution 7
Slide 8: David Gates, Johnnie Walker Global Brand Director
David Gates Johnnie Walker Global Brand Director
Slide 9: Johnnie Walker has clearly prioritised growth drivers
Johnnie Walker has 4 clearly prioritised growth drivers 1. Brilliant execution at the point of purchase 2. Drive differentiation through Keep Walking 4. Driving brand advocacy through 3. relationship Exploitation of Team Vodafone marketing, digital McLaren Mercedes Formula 1 & mentoring sponsorship
Slide 10: The challenge 10 years ago
The challenge 10 years ago WHISKY BRAND ICON BRAND 10
Slide 11: From 27 campaigns to 1 global campaign
From 27 campaigns for 2 separate variants across the world to just 1 global campaign for the brand 1998 2000 onwards 11
Slide 12: A campaign that has transformed performance
A campaign that has transformed performance 160 KEEP WALKING Strong (High) Activation 150 Low Activation 140 Volume Sales Index vs 1995 130 120 110 100 90 80 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: IWSR 12
Slide 13: Award winning creative that has redefined the category
Driven by award winning creative that has redefined the category Human 13
Slide 14: A campaign that can cross cultures
A campaign that can cross cultures Asia 14
Slide 15: A campaign that flexes to the mood of the moment
A campaign that flexes to connect with the mood of the moment Lebanon 2007 15
Slide 16: Keep Walking
DIAGEO KEEP WALKING ;/. JoHNNE Waker & 16
Slide 17: In Summary
In Summary • Flair – Award winning creative • Agility – Flexes to connect with the mood of the moment • Consumer Insight – Men all over the world want to progress • Execution – The longevity and global reach of this campaign 17
Slide 18: The four fundamentals
The four fundamentals Flair Agility Consumer Insight Execution 18
Slide 19: Ed Pilkington
Ed Pilkington Marketing & Innovation Director Latin America & Caribbean
Slide 20: Latin America is a growth opportunity
Latin America is a growth opportunity This presentation will show you why we believe this. • Demographics and economic situation • Diageo share position in Scotch • Total Beverage Alcohol opportunity for Diageo • Experienced Team – who understand the Market 20
Slide 21: Growing pool of consumers and increasing income levels
Growing pool of consumers and increasing income levels Pop. Population Trends 2002-2007 Household Income Trends 2002-2007 (m) Latin America & Caribbean (m) Latin America & Caribbean 600 40 CAGR 3.8% 500 30 Total Population (000); CAGR, 1.4% CAGR 7.2% 400 20 CAGR 9.9% 300 10 Leading Purchasing Age Po
Slide 22: TBA market is large and profitable
TBA* market is large and profitable TBA net sales in LA&C – F07 TBA Trading Profit in LA&C – F07 Figures in GBP M Figures in GBP M 593 2,889 120 1,297 11,611 3,345 Spirits & RTD Wines Beer Source: Diageo Estimates; F07 * Total Beverage Alcohol. 22
Slide 23: Scotch is the largest imported spirit and our key category
Scotch is the largest imported spirit & our key category Imported Spirits by Category % of Total Volume • Profile of Imported spirits Other, 9.9% category similar to many Whisky, 62.8% developing TBA markets Liqueurs, 7.5% • Imported spirits growing Vodka, 9.3% fast as a result of increasing number
Slide 24: Diageo has a strong leadership position in Scotch
Diageo has a strong leadership position in Scotch Market Share of Standard, Deluxe and Super Deluxe Scotch in Value – F09 numbers Mexico 83.60% Brazil 80.50% Colombia 74.50% Venezuela 69.80% Source: Nielsen 24
Slide 25: We have built a Scotch Powerhouse
We have built a Scotch Powerhouse 25
Slide 26: Johnnie Walker – our Biggest Brand
Johnnie Walker – our Biggest Brand • Consistent and strong brand building • Focused growth drivers – delivered with flair and scale across all markets. • Inspiring the people of LA&C to progress in life. • Over 40m bottles sold in last 12 months. • Grown investment by 40% in last 4 years 26
Slide 27: Diageo
DIAGEO
Slide 28: Buchanan's – Extending the legacy
Buchanan’s – Extending the legacy • Strong growth on back of clear and bold growth drivers and increased investment • We have doubled growth between F06 & F09 • 3 core Markets: Mexico, Venezuela and Colombia • 3rd largest Deluxe in world, #1 Deluxe in Latin America • Unique and relevant positioning
Slide 29: Building great brands beyond Scotch
We are also building great brands beyond Scotch Diageo NSV by Category % of total NSV Liqueurs, 4% Wine, 3% Other Spirits, 3% RTD, 6% Scotch, 67% Build Baileys & Smirnoff everywhere Rum, 3% Beer, 8% Vodka, 5% Build Local priority brands & premiumise selected local sprits Source: Diageo; F08 actual n
Slide 30: Big Category opportunities
Big Category opportunities… Rum • 32m case category: • Premiumize and build regional brands Vodka • 8 m case category: Grow the category, Keep leading with Smirnoff, • Premiumize Baileys • From 700k cases to……. 30
Slide 31: Smirnoff – World's #1 and how to enjoy it
Smirnoff – World’s # 1 . . .and How to enjoy it! 31
Slide 32: Baileys: Pan Region Relationship Marketing
Baileys: Pan Region Relationship Marketing 32
Slide 33: 2003–2008: We are delivering strong results
2003 – 2008: We are delivering strong results Increased investment is paying off 17% NSV CAGR Since recovery in F03 800 • Backed by 700 strong 600 investment in 500 A&P and 400 people 300 200 • A&P has 100 doubled in 4 0 years. F03 F04 F05 F06 F07 F08 Net sales – total Latin America & Caribbean 33
Slide 34: Winning and growing in volatile times
Winning and growing in volatile times • Brands • The Consumer • Our way of working 34
Slide 35: The Consumer: Attitudes & Trends
The Consumer: Attitudes & Trends Attitudes: • A love of life…now! • “Carpe diem” • Passionate • Adaptable • It’s a brand world • Brands as symbols Trends: • A pride in things Latin • Evolving roles • “At home” 35
Slide 36: Brands: Keep the Brands strong
Brands: Keep the Brands strong • We have brands that have survived crises before, and we will win now through: • Sustain investment behind priority brands to keep equity high • Strong price management • Efficiencies • Scale and pace • Efficient A&P management • “create and apply” model 36
Slide 37: Our way of working
Our way of working • We invest behind core markets: Mexico, Brazil, Colombia, Venezuela • Strong Marketing principles – Bold ideas at scale – Create and Apply model – Innovate 37
Slide 38: Latin America is a growth opportunity
Latin America is a growth opportunity • Summary: – Demographics and economic situation – Diageo share position in Scotch – Total Beverage Alcohol opportunity for Diageo – Experienced Team – who understand the Market 38
Slide 39: NSV Growth
NSV Growth = Brand range / Enhance Fundamentals + geographic + efficiency & prioritisation effectiveness 39
Slide 40: Big Changes in Consumer behaviour
Big Changes in Consumer behaviour Channel Shifts Demography Technology Corporate & Personal Small World Recession Responsibility / Legislation 40