Diageo has confirmed its intention not to bring any new brands into the programme run by its incubation partner Distill Ventures, a result of the group’s “strategic review of our approach to early-stage, venture investments”.
The move brings to an end an approach that saw six spirits start-ups added to Diageo’s portfolio over the last 12 years. The company had an exclusive partnership arrangement in place with London-based Distill Ventures since the latter’s creation in 2013.
“Following more than ten successful years partnering with Distill Ventures to nurture and scale emerging spirits brands, we have undertaken a strategic review of our approach to early-stage, venture investments,” a spokesperson said on behalf of both parties. “Moving forward, Diageo will not be bringing in any new brands into the Distill Ventures programme, whilst a smaller Distill Ventures team will remain in place to manage a reduced number of existing investments.”
Co-founded by Frank Lampen and Shilen Patel, Distill Ventures has “invested more than GBP245m (US$317.2m) in over 35 next-gen global drinks brands”, according to its website. The spirits brands that have transitioned to Diageo’s roster are wine-based aperitif and vermouth Belsazar and Kikori Japanese whiskey in 2018, premix cocktail Tipplesworth a year later and Mr Black coffee liqueur in 2022. On the non-alc side, Seedlip entered the stable six years ago and was joined by Ritual Zero Proof in September last year.
Global Drinks Intel understands that Distill Ventures will continue to operate as a smaller team, supporting a small number of the brands that will be retained within its portfolio. Further specific details were not disclosed.
At the start of last year, Diageo created an in-house ‘Breakthrough Innovation’ unit to “shape innovation … beyond the development of new products”. The group has since outlined a revised strategy for future growth, which includes optimising returns “by focusing on what we can control and manage”, according to CEO Debra Crew.
