Diageo plc · LSE:DGE
Diageo — Corporate Update (May 2009)
40 slides from Diageo's corporate update, May 2009
Slide 1: The Recession is driving shifts in Consumer Behaviour
The Recession is driving shifts in Consumer Behaviour 1
Slide 2: The Recession is driving shifts in Consumer Behaviour
The Recession is driving shifts in Consumer Behaviour • Shift to ‘At home’ accelerating • Greater emphasis on authenticity • Disconnect between generations 2
Slide 3: Investment Prioritisation
Investment Prioritisation Win Value Share in premium mass • Shift investment to premium mass • Take advantage of media deflation and A&P efficiencies • Balance volume/price. Shift margin focus from headline price to gross to net • Drive BVE Selective plays at Reserve and value price points • Win sha
Slide 4: Cristina Diezhandino
Cristina Diezhandino Marketing & Innovation Director Africa
Slide 5: Africa: A huge opportunity
Africa: A huge opportunity Population growth in Africa GDP Growth in Africa Population 2001-2015F GDP per capita 2001-2015F (millions) ($) 1250 3500 3000 1000 2500 2000 750 1500 1000 500 500 2001 2008 2015 2001 2003 2005 2007 2009 2011 2013 2015 Source: Euromonitor 5
Slide 6: Guinness – M Power A Brand Icon
Guinness – M Power A Brand Icon 1. Establishing Guinness masculinity and brand positioning 2. Delivering unrivalled connection and affinity with consumers 3. Believable, popular and inspirational 6
Slide 7: Guinness – Football Broadcast Sponsorship
Guinness – Football Broadcast Sponsorship 1. English Premier League broadcast sponsor across 25 African countries in sub-Sahara (excl. RSA) 2. Guinness Futbol Africa: Weekly Football TV show showcasing African football talent 7
Slide 8: Guinness – National Team Sponsorship
Guinness– National Team Sponsorship 1. Delivering National relevance through Ghana & Nigeria team associations 2. Creating right to win in ALL football occasions, Africa Cup of Nations and FIFA 2010 World Cup 3. Establishing Guinness as the only choice for the REAL FAN 8
Slide 9: Guinness – Unique Consumer Experiences
Guinness – Unique Consumer Experiences 1. Guinness Fan Parks for football fans 2. 180,000 visitors over 16 days driving +15ppt key brand equity metrics 3. Acknowledged by CAF & FIFA as World Class and benchmark for FIFA World Cup 2010 9
Slide 10: Innovation - Senator Keg
Innovation - Senator Keg • New to world brand • Access lowest price point • Pioneering process • 25% share in Kenya 10
Slide 11: Brand range across beverage alcohol
Brand range across beverage alcohol Imported Spirits Consumption per Capita 2008 Litres per Capita 6 4 2 0 USA South Africa Africa Africa (Incl (Excl. RSA) RSA) 11
Slide 12: Summary
Summary • Huge potential for the future: • Favourable macro economics • Power of Guinness • Cold Serve • Innovation strength • TBA collection • Diageo’s experience 12
Slide 13: NSV Growth
NSV Growth = Brand range / Enhance Fundamentals + geographic + efficiency & prioritisation effectiveness 13
Slide 14: Efficiency & effectiveness in our A&P
Efficiency & effectiveness in our A&P Summary of efficiency initiative Media deflation Taking advantage of media deflation Deliver consumer impact at lower cost Digital media via digital channels Ad production Making ads travel further for longer Agency fees Less creation of new content Consolidatio
Slide 15: Smart Brand
Smart Brand Pave o-oo gn8 Mart ®> eee a . wv Ys / ec a: TO DIAGEO SMARTBRAND “ Saoee) soos od hopes teoioeen Toes ; = [Sire crery Seer oro TErert Veen) = Smart! DIAGEO hae@o a s7ae ek ros | DIAGEO 15
Slide 16: Joey Bergstein
Joey Bergstein SVP Rums & Tequila
Slide 17: Captain Morgan: A 25 Year Overnight Success
Captain Morgan: A 25 Year Overnight Success 8,000 Captain Morgan Original Spiced Rum (Excludes Parrot Bay) 7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 F82 F83 F84 F85 F86 F87 F88 F89 F90 F91 F92 F93 F94 F95 F96 F97 F98 F99 F00 F01 F02 F03 F04 F05 F06 F07
Slide 18: A Simple Proven Formula
A Simple Proven Formula + The Best Tasting Powerful, Cola-Spirit drink. memorable icon of the Captain 18
Slide 19: Applying Proven Growth Drivers Have Built The Brand Everywhere
Applying Proven Growth Drivers Have Built The Brand Everywhere On Trade Iconic Communicating Buzz Activation Visibility Brand Essence Pirating 19
Slide 20: Keys to Adventure - Live
Keys to Adventure - Live Night time Hijacking + Live Captain + Fun Mechanic + “Perfect Serve” = Legendary Night 20
Slide 21: Keys To Adventure
Keys To Adventure (2. a a Weil Sor Captain Morgan’ Got a little Captain in you?
Slide 22: Iconic Visibility
DIAGEO True legends are not born, They're mixed a be ; = ‘ioe » % — APTA 06 | CynisAenes OCH! (paneer ud 22
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Slide 25: Captain Your Halloween
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Slide 26: Captain Your Holidays
‘4 Captain Your Holidays 40 aptain Morgan — is
Slide 27: Captain Outperforms Bacardi Over the Holidays
Captain Outperforms Bacardi Over the Holidays • OSR beat Bacardi in core IRI performance measures. • OSR grew vs YAG in each key measure – Bacardi declined. Dollar Sales Rum Holiday Dollar Sales % Chg +5.9 -1.2 +5.4 -2.5 14,000.0 12,000.0 10,000.0 8,000.0 OSR 6,000.0 Bacardi 4,000.0 2,000.0 - 4wk En
Slide 28: Buzz Pirating
Buzz Pirating • To Pirate News/Events in Order to Generate Word of Mouth and Unpaid Media Coverage • The Captain’s Message Becomes Content People Talk About the Captain 28
Slide 29: Applying Proven Growth Drivers Have Built The Brand Everywhere
Applying Proven Growth Drivers Have Built The Brand Everywhere On Trade Iconic Communicating Buzz Activation Visibility Brand Essence Pirating 29
Slide 30: Proven Drivers Delivering Growth in Key Markets
Proven Drivers Delivering Growth in Key Markets Captain Morgan F05-F08 NSV Growth by Market Russia Germany Denmark Ireland Norway Austria Sweden EE Canada US South Africa Total Diageo 0% 20% 40% 60% 80% 100% 250% Expansion markets1 growing at an average rate of 41% Expansion markets executing global
Slide 31: Age: Age: Age:
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 31
Slide 32: Your Presenters
a a" Your Presenters
Slide 33: Your presenters
Your presenters Name: Andy Fennell Title: Chief Marketing Officer Nationality: British Role description: Andy was appointed as Chief Marketing Officer, Diageo plc on 1st October 2008. He sits on the Diageo plc executive team. His passion is driving value by growing the top line and he believes that
Slide 34: Your presenters
Your presenters Name: David Gates Title: Global Brand Director, Johnnie Walker Nationality: British Role description: David has been Johnnie Walker Global Brand Director since March 2008. He is responsible for the development of global brand strategy, marketing & innovation for Johnnie Walker. Exper
Slide 35: Your presenters
Your presenters Name: Cristina Diezhandino Title: Marketing & Innovation Director Africa Nationality: Spanish Role description: Cristina became Marketing and Innovation Director Africa on 1st April 2009. She sits on the Africa Executive team and leads a team of marketers across the region. She is re
Slide 36: Your presenters
Your presenters Name: Ed Pilkington Title: Marketing and Innovation Director, Diageo Latin America & Caribbean Nationality: British Role description: Ed has been Marketing Director of Latin America & Caribbean since May 2005. He sits on the Latin American Executive team and leads a team of Marketers
Slide 37: Your presenters
Your presenters Name: Joey Bergstein Title: Senior Vice President, Global Marketing – Rum & Tequila Nationality: Canadian Role description: Joey is charged with leading the aggressive expansion of our Rum & Tequila business around the world. Diageo’s Rum portfolio includes Captain Morgan, the second
Slide 38: Marketing Teleconference Q&A Session
Marketing Teleconference Q&A Session 3pm (UK time) – 20 May 2009 Please use the following dial-in numbers: UK – Toll free 0800 279 9640 North America – Toll free 1866 850 2201 France – Toll free 0805 770 155 Germany – Toll free 0800 673 8354 Ireland – Toll free 1800 944 322 Italy – Toll free 800 088
Slide 39: For further information on Diageo, please visit the Investors section
For further information on Diageo, please visit the Investors section of: diageo.com The Investor Relations team can be contacted on: UK +44 (0)20 7927 4267 US +1 202 715 1110 or by email at: [email protected] 39
Slide 40: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements ` This document contains forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements