Diageo has consolidated its US$100-plus-per bottle brands into a new unit that the group hopes will become “the number one luxury spirits company in the world”.
Diageo Luxury Group, unveiled today, is the result of an alignment of the group’s commercial, marketing and sales personnel to a strategy for attracting high net-worth individuals. With a particular focus on the scotch whisky category, the unit, which will be headed up by former Johnnie Walker brand director Julie Bramham, will also oversee the Johnnie Walker visitor centre in Edinburgh as well as high-end wine business Justerini & Brooks.
Among the brands referenced in the announcement are single malts Brora and Port Ellen, both of which benefitted from a GBP35m (then-US$49.7m) investment, confirmed in May 2021, to recommence production at their respective distilleries after they were closed in the 1980s.
Also included in the new remit is the company’s ‘Casks of Distinction’ programme that offers individual casks of scotch for purchase.
“Bringing the breadth of our luxury offering together, alongside a focus on expansion of our luxury-based experiences, has Diageo incredibly well-placed to deliver for our clients and customers,” said Bramham. “I look forward to an exciting future.”
At the same time, the brand owners UK division has set up Diageo Luxury Co, which will operate at a “broader price point” in its market of GBP30+ (US$38.70) per bottle and work with brands including Cîroc vodka, Don Julio tequila and Johnnie Walker.
At the end of July, Diageo posted flat sales from fiscal 2024 – to the end of June – on a 3.5% volumes decline.
