Diageo

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FOREIGN DONOR

ALEC

HEARTLAND

CLAREMONSTERS

GUN MFG

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http://www.sourcewatch.org/index.php?title=Diageo

Diageo plc is a global consolidated liquor company that previously owned Burger King.

Formed in 1997 when Guinness merged with food and spirits company Grand Metropolitan, Diageo was the world's largest producer of alcoholic drinks in 2011. When Diageo purchased Seagram's, it obtained the brands Captain Morgan, Crown Royal, and VO Canadian. Based in London, the company sells in 200 countries. For 2010, Diageo had a revenue of $14.6 billion.^[1] CEO Paul Walsh received $9.68 million in compensation in 2009 according to the Guardian,^[2] but receives $5.09 million annually in 2011, according to Reuters.^[3]

Formerly known as Grand Metropolitan plc.

Ties to the American Legislative Exchange Council

DIAGEO is a member of the American Legislative Exchange Council (ALEC).

A list of ALEC Corporations can be found here.

Kenneth Lane, Vice President of Government & Trade Relations, is Diageo's representative on ALEC's corporate ("Private Enterprise") board as of 2011.^[4]

DIAGEO has also hosted VIP events for legislators at ALEC meetings. Pictures from the 2010 ALEC Annual Meeting, for example, include a set of photographs from the "Diageo Wine and Cheese Reception."^[5]

Brands

Brands under Diageo include: Crown Royal, Johnnie Walker, J&B, Windsor Premier, Buchanan's, Bushmills, Smirnoff, Ketel One, Ciroc, Baileys, Captain Morgan, Jose Cuervo, Tanqueray, and Guinness.^[6]

Liquor Advertising on TV

In 2002, Diageo and NBC signed a deal to advertise hard liquor, the first instance of hard liquor advertising on TV in 50 years.[1] The deal created a public outcry, particularly from Mothers Against Drunk Driving, that resulted in the deal eventually collapsing.[2]

Political contributions

In 2010, Open Secrets reports that DIAGEO North America spent $208,768 in federal political contributions. House Democrats received $60,483 and Republicans $24,097. Senate Democrats received $23,436 and Republicans $19,736.^[7]

Diageo North America gave $61,600 to federal candidates in the 2006 election through its political action committee - 31% to Democrats, 53% to Republicans, and 16% to independent Joseph Lieberman (I-CT). ^[8]

Lobbying

The most recent lobbying information states that Diageo North America spent $3,220,000 for lobbying in 2006. In-house lobbyists as well as five lobbying firms were used, including DLA Piper Rudnick Gray Cary and Quinn Gillespie & Associates. ^[9]

Self-Regulation Questioned

On October 18 2005, Diageo PLC threw its weight behind the Portman Group, the industry's self-appointed regulatory body on alcohol, following moves by the UK government to question its relevance in the light of 24-hour licensing and the high levels of so-called 'binge-drinking' among young adults. ^[10]

The government's committee on alcohol abuse is understood to be unhappy with the Portman Group's stance on alcohol abuse and some academics are calling for a more independent review body. ^[10]

Annual Revenue

2010^[11]

Operating Revenue: $14.6 billion

Gross Operating Profit: $9.1 billion

Total Net Income: $2.4 billion

2009^[12]

Operating Revenue: $15.3 billion

Gross Operating Profit: $9.4 billion

Total Net Income: $2.6 billion

2008^[13]

Operating Revenue: $16.1 billion

Gross Operating Profit: $10.1 billion

Total Net Income: $3.2 billion

Personnel

• Paul Walsh - CEO -
• Deirdre Mahlan - CFO -
• Ron Anderson - Chief Customer Officer -
• Nich Blazquez - President, Diageo Africa -
• Andy Fennell - Chief Marketing Officer -
• Stuart Fletcher - President, International Diageo -
• Gilbert Ghostine - President, Asia Pacific -
• David Gosnell - President, Global Supply and Procurement -
• Jim Grover - Director of Global Business Support -
• Ivan Menezes - President, North America and Chairman, Asia Pacific -
• Randy Millian - President, Latin America -
• Andrew Morgan - President, Europe -
• Tim Proctor - General Counsel -
• Larry Schwartz - President, Diageo USA -
• Gareth Williams - Human Resources Director -
• Ian Wright - Corporate Relations Director -

Selected members of the Board of Directors: ^[14]

• Jon Symonds, Also Chief Financial Officer of AstraZeneca
• Lord Hollick, Also Managing director - Kohlberg Kravis Roberts & Co. L.P.
• Franz Humer, Also Chairman & CEO - F. Hoffmann - La Roche Ltd. and Chairman - European Federation of Pharmaceutical Industries and Associations (EFPIA)
• Maria Lilja, Head of American Express Europe
• William Shanahan, Former Chief operating officer - The Colgate-Palmolive Company
• Todd Stitzer, Also CEO Cadbury Schweppes

Contact Info

Headquarters:

8 Henrietta Place

London

W1G 0NB, United Kingdom

Phone: +44-20-7927-5200

Fax: +44-20-7927-4600

Web: http://www.diageo.co.uk

U.S. office:

801 Main Avenue

Norwalk, CT 06901

USA

Phone: 203-229-2100

Fax: 203-229-8901

Web: http://www.diageo.com

Resources and articles

Related Sourcewatch articles

• David Gosnell
• Jon Pageler - former vice president
• Lord Davies of Abersoch - former board member
• William S. Shanahan - former board member
• Philip Yea - former finance director
• Rodney Chase
• Neil Cameron
• Nick Rose (UK) - former CFO
• David Armstrong (UK)
• Anthony A. Greener

References

1. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ DEO Annual Financials,"MarketWatch.com"
2. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ Simon Goodley, "Hollick review could boost executive pay at Diageo," Guardian, September 14, 2010
3. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ "Walsh, Paul: Bio & Compensation," Reuters, accessed June 28, 2011
4. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ Private Enterprise Board, ALEC website, accessed July 8, 2011.
5. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ Kurstin Roe Photography ALEC-23 Diageo Wine and Cheese Reception, official photographer's website, accessible via link from alec.org, accessed June 9, 2011
6. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ Strategic Brands,"Diageo.com"
7. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ Federal Contributions, "Open Secrets"
8. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ 2006 PAC Summary Data, Open Secrets, accessed September 2007.
9. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ Diageo North America lobbying expenses, Open Secrets.
10. ↑ ^Jump ^up ^{to:10.0 10.1} "Diageo backs Portman Group in row over alcohol abuse", Forbes, accessed October 18, 2005.
11. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ DEO Annual Income Statement,"MarketWatch.com"
12. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ DEO Annual Income Statement,"MarketWatch.com"
13. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ DEO Annual Income Statement,"MarketWatch.com"
14. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ Board of Directors, Diageo, accessed September 2007.

Categories: 

• ALEC Exposed
• Corporations
• United Kingdom
• ALEC Corporations

Kenneth Lane is the Vice President of Government and Trade Relations at Diageo. Formed in 1997 when Guinness merged with food and spirits company Grand Metropolitan, Diageo is now the world's largest producer of alcoholic drinks. When Diageo purchased Seagram's, it obtained the brands Captain Morgan, Crown Royal, and VO Canadian. Based in London, the company sells in 200 countries. For 2010, Diageo had a revenue of $14.6 billion.^[1] Its CEO, Paul Steven Walsh, received $1.872 million in compensation in 2010.^[2]

Ties to the American Legislative Exchange Council

Lane is also on the Private Enterprise Board of the American Legislative Exchange Council (ALEC) as of 2011.^[3]

Resources

Related SourceWatch articles

References

1. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ DEO Annual Financials,"MarketWatch.com", accessed May 2011
2. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ Morningstare, Diageo PLC ADR DEO, online corporate financial profile, accessed July 8, 2011
3. :{Jump up:(style="top:-99999px;clip:rect(1px 1px 1px 1px);overflow:hidden;position:absolute !important;padding:0px !important;border:0px !important;height:1px !important;width:1px !important"):}:↑ American Legislative Exchange Council, Private Enterprise Board, organizational website, accessed July 7, 2011.

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open secrets

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Top Candidate Recipients, 2013-2014

Candidate	Amount
Himes, Jim (D-CT)	$6,276
Paulsen, Erik (R-MN)	$5,728
Eldridge, Sean (D-NY)	$5,200
Garcia, Joe (D-FL)	$5,000
Walden, Greg (R-OR)	$4,377

Average Contributions to Members of Congress, 1990-2014 

includes contributions to members' presidential cmtes

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