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Home , Captain Morgan, Crown Royal, Gleneagles Hotel

A strong business getting stronger

Winter 2013 contents

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Diageo Pensioner Newsletter Pensioner Thank you for your feedback on the new-look newsletter we introduced introduced we newsletter on the new-look feedback your for you Thank you let to the same styleand content kept we’ve see, As you’ll last year. some of the is performing with you share to and the Company know how highlights. year’s Stuart Stephen; P a new Director, welcomed Team In the Pensions March, held similar Having Banking Group. Lloyd’s at Director Pensions Group former Stuart of pensions brings with him a wealth and Sainsbury’s, Barclays at roles Stuartto experience. getting six months Diageo’s his first has spent know can Team the Pensions how understand enable him to business needs to shape our service in the future. in 2013. Amid the soaring a good set of business results Diageo has achieved reach to also rose price the Diageo share wave, heat of August’s temperatures in the results about our more can read You a new all-time high of £21.525. update. Diageo Company important it is increasingly that for realise we companies, large Like many understand not just pensioners alike to and employees our shareholders, we the importance in which way performance, of our financial but also the impacts. Read about our and economic environmental manage our social, find it interesting hope you’ll on page 6 – we sustainability responsibilities and informative. taking currently place preparations about the exciting can also read You hosting the 2014 . for in readiness at with included a contact card additional feedback, we’ve In to response pop out the Simply, numbers on the inside back cover. useful telephone can contact us easily you way, That handy. and keep it somewhere card paperwork our details. your for through search to without having Whatever year. nearing the end of another busy and successful are we here So, Trustee on behalf of the season, the festive for plans and preparations your and healthy all a happy wish you like to would we Team, and the Pensions our very 2014. and send you best wishes for Christmas, Diageo Pensioner Newsletter Pensioner Diageo Welcome to the annual the annual to Welcome 2 4 5 6 7 8 9 10 11 12 13 15 15 Diageo Pensioner Newsletter Diageo Pensioner 3 Welcome Diageo Grant Scheme Diageo Grant us informed Keeping card Contact Leven at 40 years Celebrating anyone? Cocktails offers Brandstores hours opening Diageo Brandstores preparations Cup Ryder Gleneagles’ Walsh Paul succeeds Menezes Ivan update Company the future for Diageo delivering Voyager John Walker contents 4 Ivan Menezes succeeds Paul Walsh as Chief Executive Officer

Paul Walsh (left) hands over to successor Ivan Menezes

Many of you will recall that Paul Walsh took up the role Officer of Diageo since February 2012, Ivan was widely anticipated of Chief Executive Officer in September 2000. At that point, to move to the “top job”. Diageo shares were trading at £5.70 on the London Stock Ivan joined the business in 1997, just before the merger with Grand Exchange and the business was more broadly based with Metropolitan when it was plc. Working first of all in global interests in food manufacturing and retailing, as well marketing Ivan led the team that developed the iconic Johnnie as premium drinks. It was Paul who focussed the business Walker “Keep Walking” campaign. After marketing, he moved to take on premium drinks − an area where Diageo would go on to up the role of President of Venture Markets where he led business become a global leader. in 123 countries, accounting for 70% of the world’s population. In the years that have followed, Paul has overseen the acquisition Ivan moved again, to America, initially as Chief Operating Officer of along with brands like Bushmills, Zacapa and Ketel and was instrumental in the growth programme that restructured One to name a few. In addition, he has delivered some great the route to market across the USA and laid the foundations for the business partnerships including Ypioca, Meta Abo, Mey Icki and advantaged position we enjoy today. More recently, he has taken . Diageo’s net sales in these markets have grown from on additional responsibilities as the Chairman of Diageo Asia 25% to nearly 50%. Pacific and Latin America & , broadening his leadership As one of the FTSE’s longest-serving CEOs, Paul led the business accountabilities further still. through some tough times but his determination and focus Like Paul, Ivan has a reputation for commercial focus and delivery, on what was most important for the business meant that we’ve and is passionate about our brands. remained ahead of the competition.

Taking the helm Paul handed over to Ivan Menezes on 1 July 2013 and stood down from the Board at the September 2013 AGM. As Chief Operating

Diageo Pensioner Newsletter 5 Company update Celebrating life, every day, everywhere We are the world’s leading premium drinks business with an outstanding collection of brands including , , J&B, Windsor, Buchanan’s and Bushmills , , Cîroc and vodkas, Baileys, , and Guinness. Johnnie Walker Smirnoff Baileys Tanqueray Guinness No1 No1 No1 No1 No1 SCOTCH PREMIUM VODKA LIQUEUR IMPORTED GIN STOUT in the world in the world in the world in the US in the world

Another year passed, another year stronger In Africa, our strategy is to grow the leadership across alcohol As the year’s results demonstrate, Diageo has achieved beverages focusing on the emerging middle-class consumer and good growth in 2013. We’ve delivered a robust top line providing a brand choice for every occasion. performance, globally our brands are growing stronger In Eastern Europe, again the focus is on emerging middle-class through marketing and innovation, and our range includes consumers, whilst in our target is to grow both local and seven of the top twenty premium spirits brands worldwide. international spirit sales. During the year ending June 2013, we managed our business In Latin America and Caribbean, the priority is continued through five regions: North America, Western Europe; Africa; Eastern leadership in Scotch, whilst broadening the range to include vodka, Europe and Turkey; Latin America and Caribbean and Asia Pacific. rum, liqueurs and local spirits. This will be achieved by continuing 42% of our business is now in faster-growing markets in Latin to invest in routes to market, offering a range and depth of leading America, Africa, Asia, Eastern Europe and Turkey. This is balanced brands, and enhancing our supply footprint to provide an with our strong business in the most profitable beverage market, increasing number of wealthy customers with the premium the United States, and an integrated Western European business. brands to which they aspire. Here’s a more detailed look at our regions’ focus and results: Finally, in Asia Pacific, which has both developed and new North America is our biggest region by net sales and high-growth markets, our strategy is to operate across categories operating profit. participating in local spirits, international spirits, and beer, focusing on the highest growth categories and consumer opportunities. In Western Europe, Diageo is the largest premium drinks company. Western Europe is managed as a single market; country teams focus on sales, while marketing and back office functions are integrated to drive efficiency and flexibility.

Diageo Pensioner Newsletter 6 Delivering for the future

Making drinks is our business. Managing sustainability is key to our future success. St Croix, Rum distillery, US Virgin Islands Captain Morgan rum is supplied to the United States from Each year, we produce 3.5 billion litres of beer, spirits and wine this distillery. Water is a significant issue for the area. for our customers to enjoy. It’s an extensive business that requires Before building the site we made assurances that many resources – from cereals and water to make the drink; glass to wastewater from distillation would be purer than the bottle it; fuel to transport it and over 23,000 dedicated employees water from the surrounding area. 90% of all fresh water to produce, market and sell our brands globally. used in the distillation process is recycled. The water is Of course, we want our customers to continue enjoying our brands. cleaned through a series of processes, including anaerobic But, it’s incredibly important that we’re working, and producing our digestion, evaporation and reverse osmosis, before being products, sustainably – which is why we have taken a closer look at reused. This system removes the need for any water the ways we do business across all areas. Here are some of the inroads disposal into the Caribbean. we’re making towards becoming a more sustainable business.

Halving our carbon footprint Energy is needed at all stages of production, and while there is no Premium and sustainable packaging single solution to reducing energy use and carbon emissions, we We sell around 1.55 billion bottles a year with a total packaging have focussed on three main areas: weight in the region of 900,000 tonnes. Glass bottles make up over • Improving energy efficiency 90% of this but it also includes cardboard cartons, cans and plastic. • Generating renewable energy By 2015 our packaging targets are: • Purchasing electricity from renewable or low carbon sources. • Reduce: We aim to reduce packaging weight by around 10%. • Reuse: Increase the average recycled contents of our Investments in distilleries in at Roseisle and the St Croix packaging to 42%. distillery in the US Virgin Islands, and in a new bio-energy plant • Recycle: All packaging will be 100% recyclable or reusable. at Cameronbridge in Scotland allows us to use cutting-edge Remove materials that are a potential risk to the environment. technology to produce our brands more efficiently and generate renewable energy. Often this is from by-products of production.

81% The highest level of recycled content used in a glass bottle by Diageo

The Roseisle distillery Officially opened in 2010, Roseisle produces 10 million litres of single malt whisky each year. The distillery uses draff, a by-product from distilling as a bio mass fuel to produce steam for distillation. Wastewater is treated in a way that produces biogas as well as improving the final quality of the wastewater. Finally, waste heat, created during the distillation process as hot water, is used locally in maltings to preheat kiln air. This reduces the need to use fossil fuel for heat production. In using these processes, Roseisle will use up to 70% less fossil fuel, equivalent to 13,000 fewer tonnes of carbon dioxide than a comparable site.

Diageo Pensioner Newsletter 7 John Walker & Sons Voyager

To launch the award-winning John Walker & Sons Odyssey, a 1930s style luxury yacht Voyager reimagined Johnnie Walker’s epic ocean voyage to the four corners of the world.

During its 16,120-nautical mile expedition, Voyager docked in 18 ports between Shanghai and its destination port of . At each port, high-profile events, combining heritage with 21st century luxury, created a once-in-a-lifetime experience for over 4,000 visitors.

A special celebration event was held to mark the contribution of the Diageo people who make Scotch whisky. Colleagues from across our business in Scotland, including distillation, blending, innovation, packaging and support functions, attended the event in Edinburgh. Many of those who work directly on creating luxury Scotch at the Brand Technical Centre (Menstrie) and the Luxury Products Area (Leven) also attended to see first-hand how Diageo is leading the marketing of luxury Scotch whisky in global markets.

Diageo Pensioner Newsletter 8 Celebrating 40 years at Leven

Following two years of construction, Leven opened its doors on 24 September 1973. Forty years later, we take a look at how the site has grown. Here’s Leven in numbers…

Today, our Leven site operates on a 24/7 basis and packages around 37 million cases of spirits per year, regularly packaging in excess of one million cases on a weekly basis. At peak periods, the site employs around 1,200 people and houses 24 production lines, 11 of which are dedicated to the packaging of Diageo’s world-leading brands of Scotch Whisky, such as Johnnie Walker, Old Parr and Cardhu, which are distributed all over the world. The other lines package a range of products including Gordon’s, Tanqueray and Smirnoff. In total, 160 brands are now packaged at Leven and, in addition to its packaging operation, the 168-acre site also houses extensive warehousing and blending facilities.

Diageo has invested more than £200 million in the Company’s operations in Fife over the past three years, which has supported the creation of 400 permanent jobs.

Diageo Pensioner Newsletter 9 Cocktails anyone?

Fancy a change from your normal tipple? Maybe you’re having friends and family over and want to serve something a bit different? Why not give these simple but crowd-pleasing cocktails a whirl? We’ve even included a non-alcoholic one so everyone can join in.

Captains Morgan’s Spiced Hot Buttered Rum − one for the colder evenings You will need: • A heatproof glass • 1 teaspoon of unsalted butter • 1 teaspoon of maple syrup • 35ml of Captain Morgan’s Spiced rum • Warmed apple juice (amount will depend on the size of your glass)

Pour the maple syrup and Captain Morgan’s Spiced rum into the heatproof glass. Add the warmed apple juice and butter, and mix carefully until the butter has melted. Serve immediately.

Pimm’s Blackberry & Elderflower Cup − a summer reminder You will need: • A Champagne or cocktail glass • 25ml of Pimm’s Blackberry and Elderflower • Cava or Champagne of your choice • Blackberries or forest fruits to garnish if desired

Pour the Cava or Champagne into your glass. Add the Pimm’s Blackberry & Elderflower. Garnish with your desired fruit.

Be Good Cranberry Cocktail − for the teetotallers or designated drivers! You will need: • Slim jim glass • 50ml cranberry juice, unsweetened • 50ml apple juice, unsweetened • 2 teaspoons of runny honey • Orange slices for garnish • Ice

Put your ice in the glass to chill. In a spare jug or larger glass mix together all the other liquid ingredients until the honey is well mixed. Pour the cocktail over ice in the glass and garnish with the orange slice.

Diageo Pensioner Newsletter 10 New offers every month at Diageo Brandstores

Have you popped in to your local Brandstores staff shop recently? If not, you may be interested to know that we’ve reintroduced special offers on items you wouldn’t be able to purchase anywhere else in the UK.

We have new and exciting offers coming in every month, and with Christmas fast approaching, you’ll be able to pick up a bargain, perhaps a special gift for family and friends or a treat for yourself. To take advantage of these great offers, don’t forget to bring your DRA or shop card and, to help with the environment, your own reusable shopping bag.

For those less-able retired staff, you may appoint a shopper on your behalf by completing the proxy form available from your local store.

Finally, it’s worth remembering that you can also receive a discount at any of our Distillery Visitors Centres* (DVCs) if you present your DRA card at the till – great if you are planning a holiday near to one of our centres!

We look forward to seeing you soon. HAPPY SHOPPING!

*For DVC seasonal opening hours, please visit www.discovering-distilleries.com

Diageo Pensioner Newsletter 11 Diageo Brandstores opening hours

Site Contact numbers Opening hours

EDINBURGH PARK, EDINBURGH 0131 519 2255 Mon - Fri: 12.30pm – 2.30pm

DUNDAS HOUSE, GLASGOW 0141 332 3323 Mon, Wed, Fri: 2.00pm – 3.00pm

J&B, RENFREW 0141 885 6321 Fri: 11.00am – 12.00pm

LEVEN, FIFE 01333 433121 Thu: 3.00pm – 4.00pm

DEWARS CENTRE, PERTH 01738 458797 Tue: 10.00am – 12.30pm

CARSEBRIDGE, ALLOA 01259 766701 Wed, Thu: 1.00pm – 3.00pm

SHIELDHALL, GLASGOW 0141 885 1122 Tue: 10.00am – 11.45am & 12.45pm – 3.00pm

Tue: 10.00am – 12.30pm & 2.00pm – 4.00pm MORAY HOUSE, ELGIN 01343 562236 Thu: 10.00am – 12.30pm & 2.00pm – 4.00pm Fri: 10.30am – 11.30am

LAGAVULIN 01496 302730 Tue: 10.00am – 12.00pm

OBAN 01631 572000 Mon: 12.00pm – 2.00pm

TALISKER, SKYE 01478 614301 Wed, Thu: 10.00am – 11.00am

ROYAL LOCHNAGAR 01339 742700 Tue, Thu: 10.00am – 4.00pm

BLAIR ATHOL 01796 482007 Mon: 10.00am – 1.00pm

CLYNELISH 01408 621000 Thu: 10.30am – 12.00pm

GLEN ORD 01463 872000 Tue: 2.00pm – 4.00pm

RUNCORN, CHESHIRE 01928 755712 Mon - Fri: 12.00pm – 2.00pm

7HQ, LONDON 0208 978 6000 Mon - Fri: 8.00am – 6.00pm

BUSHMILLS, N.I. 0282 073 1521 Fri: 12.30pm – 1.15pm

Diageo Pensioner Newsletter 12 Gleneagles’ Ryder Cup preparations in full swing

Gleneagles has a global reputation for excellence and are to be extended,” reveals Fenwick, a local Perthshire resident. Managing Director Patrick Elsmie is at the heart of ensuring “We’re obviously going to be putting infrastructure into the it shines once more, under the full glare of the world’s course and there has to be movement for buggies and such like. sporting spotlight in September 2014. We’re going to double the width of the cart path down the 1st because it’s going to be a main thoroughfare coming away from It goes without saying that while The Gleneagles PGA Centenary the tented village. We’ve also started taking out the rough Course will play centre stage, the preparations needed for a grasslands, harvested them off to try and thin the rough down successful Ryder Cup reach far further than the course itself. a bit and make it more manageable. After that, we’ll make a start Recent awards of Scotland’s Leading Resort, Leading Resort on some of the broom and gorse, as we’re obviously starting to look and Leading Spa Resort show that the continuous improvement at spectator movements.” of facilities and service is always at the fore at Gleneagles. Of course, the legacy of the Ryder Cup will remain long after the event, but Meanwhile, Fenwick has confirmed The King’s and Queen’s Courses even now, the refreshed Dormy Clubhouse and remodelled Club will also be used during The Ryder Cup – as part of the players’ facilities can be enjoyed by guests at Gleneagles. practice facilities. The opening hole on The King’s will act as the driving range, while new drainage systems have been installed Two such recent guests, European and US team captains on the 18th greens of both King’s and Queen’s, so they react Paul McGinley and Tom Watson, both made preparatory visits ahead similarly to those on The PGA Centenary. of the widely publicised year-to-go celebrations in September. During these visits they selected preferred team meeting and “The grass types are already similar and it will be a case of firming dining rooms, and familiarised themselves with the wide range them up,” explains Fenwick. “One of the greens is to be used for of services available to their teams during the event. practice putting and the other for chipping.” For Fenwick and his hard-working team, practice is sure to make perfect. Logistics are already in place for the receipt and storage of the teams’ sportswear, and the clothing and accessories required for opening and closing ceremonies. We also anticipate that our award-winning spa, and hair and beauty experts will be in high demand, so plans are also being made to ensure everyone can be accommodated.

We’re expecting 7,000 employed staff, marshals, volunteers, media and emergency service personnel on site each day. Over the five days, 250,000 spectators are expected to attend the tournament, 8,000 of whom will arrive by train each day with direct access onto the course at the 10th hole.

But turning back to the golf itself, Scott Fenwick, Gleneagles & Estates Manager, who knows The Gleneagles PGA Centenary Course inside out and who has worked closely with and his design team on alterations, is simply relishing the task of presenting the 7,296-yard layout to the world. “The good thing is all the hole changes have been completed. All we have to do now is tweaking on the course,” he states.

Fairway drainage/sanding and aeration work began on the At the time of printing tickets are sold out for all three match days, however tickets are still available to purchase for the practice days and course last winter. The logistics of catering for all in September opening ceremony. Tickets are available from the European Tour website. 2014 are also being addressed. Roadways all around the course, Whilst The Gleneagles is proud to host the Ryder Cup 2014 they are for example, are being upgraded. “In certain places, the cart paths not responsible for ticketing the event.

Diageo Pensioner Newsletter 13 Diageo Grant Scheme

In today’s world, corporate social responsibility is core to creating a sustainable and successful business and Diageo prides itself in the contribution that it makes to the community. One way that this is done is through our retiree grants programme, which supports the volunteering activities of our retirees in the community by providing a £100 grant to the charity in which they are actively involved.

Application forms are processed through an external agency called the Charities Aid Foundation. The overall fund will continue to be administered by the Diageo Foundation.

How do I apply? In order for your application to be completed quickly and efficiently here are some key pointers to remember when completing the application form. If the form is not completed correctly, there may be delays to your application.

• Complete all details in Part A.

• Request the recipient charity to complete Part B.

• Send your form directly to the Charities Aid Foundation.

• Payments will be made quarterly (January, March, June, September).

Diageo Pensioner Newsletter 14 Retiree grant request

Part A

Name: Reason for request: (Please include details of your active involvement)

Address:

Postcode:

Telephone number:

Pension number:

Note you can only apply for this grant once a year Date:

PART B - To be completed by the charitable organisation who will receive the grant

Organisation name: Organisation address:

Charity number: Bank account number:

Bank sort code: Contact name:

Email: Authorised confirming details:

Telephone: ......

Please send completed form to: CAF (Charities Aid Foundation), 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4TA T: 03000 123 000 F: 03000 123 001 Please allow 90 days for your application to be processed

Diageo Pensioner Newsletter 15 Keeping us informed

You may recall the article from last year’s newsletter about or a copy of the original document certified by a solicitor. Once how we store and protect your personal information. This year a Power of Attorney is in place we will follow the instructions set out we wanted to take this opportunity to remind you how to keep in the agreement. If you want to discuss how we process these please us informed of changes to your personal details. We’ve also contact the Pensions Team who will be happy to help you. included a useful contact card with our contact details. Simply, Tell us who matters – dependant’s pension pop out the card and keep it somewhere handy. Are you currently unmarried and live with someone whose finances Change of address or bank details are closely linked to your own? Do you provide significant financial If you move house please tell the Pensions Team in writing. support to someone who is dependant upon you because of Unfortunately, we cannot accept these details over the telephone. a disability? Or, do you have a former spouse who is receiving Please make sure you include your signature on the letter. You maintenance payments from you? can either post the letter to us, or scan the letter and email If the answer to one of the above is yes, and you have not already it to [email protected]. done so, then you may wish to consider completing a ‘Tell us who If you change your bank details, please inform the Payroll Team matters’ dependant’s pension form. This provides information that in writing, making sure you give us plenty of notice to ensure we can the Trustee will consider in exercising its discretion over the benefits make the changes before your next pension payment. You should payable in the event of your death. Forms are available from our web- advise us by the 15th of the month for the change to be effective site www.myDiageopension.com or we can send one to you from your next pension payment. if you wish.

In any communication please include your pension number, which Contact details you’ll find on the front of your contact card. If you have questions regarding the actual payment of benefits, such as payment dates, tax deductions etc. you should contact The Payroll Asking us to use a Power of Attorney Team. For all other enquiries please contact the Pensions Team. A Power of Attorney is a formal agreement allowing another person to manage your affairs. We need sight of either the original document @

Contact Card

Diageo Pensioner Newsletter 16

Diageo Pensioner Newsletter - Winter 2013