This Diageo CAGNY 2024 presentation outlines the company's strategy for sustainable growth. The presentation highlights Diageo's strong position in the total beverage alcohol (TBA) market, driven by consumer trends like premiumization and convenience, and details four key strategies: growth in core categories, portfolio expansion, innovation, and enhanced execution. Financial performance and ESG initiatives are also discussed.
Diageo's current value share of the TBA market is 4.7% (IWSR 2022 data). Their ambition is to increase this to 6% by 2030.
Diageo's three largest categories are Scotch, Beer, and Tequila. Together, they represent just over 50% of their total reported NSV in fiscal 23.
Specific innovations mentioned include: The Singleton Golden Tresor (recruiting consumers in Greater China), Johnnie Walker Blonde (recruiting from Brazil's casual beer occasions), Johnnie Walker Blue Label Elusive Umami (introducing consumers to a new luxury flavor profile), Guinness Nitrosurge (allowing consumers to pour a perfect pint at home), Guinness 0.0 (a non-alcoholic beer), Baileys Chocolate Liqueur, Don Julio Rosado, Casamigos Cristalino, and Ketel One Espresso Martini Ready to Serve.
In fiscal 23, Diageo stepped up productivity delivery to offset higher cost inflation. Key areas of focus included cost of goods, marketing efficiencies, and overhead efficiencies. They exceeded their three-year $1.5 billion productivity savings target by the end of fiscal 24 and aim to deliver $2 billion in savings from fiscal 25 through fiscal 27.
