Its primary focus is on eight global priority brands that enjoy the strongest positions in the biggest markets: Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray and Captain Morgan.
Diageo concentrates on four major markets: North America, UK, Ireland and Spain. North America is Diageo's most important market, contributing about 35% of operating profit, while the UK is second. Ireland is home to two of its priority brands: Guinness and Baileys.
Diageo was formed in December 1997 when Guinness and Grand Met merged to become the world's biggest spirits group and seventh-biggest food and drinks group.
Upon its formation, Diageo divided its business into four groups: Pillsbury, Burger King, Guinness and United Distillers & Vintners (UDV).
UDV was formed by the merger of Guinness' spirits division, United Distillers, with the vodka and liqueurs business of Grand Met, International Distillers and Vintners. Guinness and UDV merged in 2000 to form Guinness UDV.
September saw Diageo unveil revamped packaging for its Smirnoff brand.
It incorporates a tapered, embossed glass bottle and a sharp red and silver logo. It is already in use in the US and will be available in the UK from March 2004.
Later that month, Diageo announced it would cut 900 jobs as part of integration of the Seagram businesses.
In October, the company unveiled plans to introduce a five-litre keg of Guinness for the take-home market.
That same month, Diageo embarked on two campaigns. Mother created ads for Archers Aqua, featuring barmen dressed up as scantily-clad pilots and firefighters, with the tagline 'Something for the ladies'.
And Guinness launched work through Abbott Mead Vickers BBDO to promote its 500ml draught can, showing a crowd settling in to watch a football match on TV.
Operating profit £2029m
(year to June 30)
Abbott Mead Vickers BBDO, BBH, GCAS Advertising, Mother, J Walter
Thompson, Miles Calcraft Briginshaw Duffy, Grey Worldwide, Leo Burnett
Carat, Starcom Motive
Direct marketing agencies
Tullo Marshall Warren, Craik Jones Watson Mitchell Voelkel
Sales promotion agency
CPN, Lexus, Leedex, Cohn & Wolfe
Adspend (year to October)
Direct mail £900,219
Source: ACNielsen MMS
UK marketing director
Park Royal Brewery,
London NW10 7RR
Tel: 020 8965 7700
Web site: www.diageo.com