Diageo Creates Dedicated Global Luxury Unit To Tap The High End

In an effort to capitalize on premiumization globally, Diageo has unveiled a new Luxury Group to house its high-end brands. Led by Julie Bramham, former global brand director of Johnnie Walker, the new division is intended to accelerate growth for Diageo’s $100-plus brand portfolio, with the goal of becoming the number-one luxury spirits company in the world.

“This is the fastest growing price tier in international spirits since 2020, underpinned by long-term consumer trends, like a growing interest from young and diverse consumers and the growing desire for intangible experiences in luxury,” the company stated. The new division is charged with creating “a luxury innovation pipeline of products, development of the private client business, and luxury spaces and experiences at Diageo’s pinnacle brand homes.”

The Diageo Luxury Group portfolio will include key high-end brands like single malts Brora and Port Ellen, Scottish brand homes including Johnnie Walker Princes Street, and luxury wine business Justerini & Brooks. It will have a particular focus on Scotch, a category in which Diageo leads the market, driven by Johnnie Walker, the largest-selling spirits brand globally in retail value terms, according to Impact Databank, at nearly $10 billion last year.

As it ramps up the innovation pipeline, Diageo noted that the group will have access to more than 10 million casks from over 30 distilleries—approximately half of the total number of casks currently resting in Scotland—including ‘ghost’ stocks from Port Ellen and Brora. The company plans to build on its Casks of Distinction program, offering individual casks of rare Scotch from Diageo’s stocks to global clients.

Diageo’s 15 brand homes and distillery visitor experiences will also all be overseen by the Luxury Group, including Johnnie Walker Princes Street, which has had over 1 million visitors from 141 countries since opening three years ago.

The new Luxury Group will focus on stoking demand for Diageo’s upscale brands in influential cities worldwide as well as the travel retail market. “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.—Daniel Marsteller

Tagged : Brora, Diageo, Johnnie Walker, Port Ellen

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