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Diageo ‘seeks opportunities’ to extend Reserve portfolio
Diageo is “constantly screening the world” to discover new categories and brands that could be added to its Reserve portfolio, according to the unit’s managing director.
Cristina Diezhandino is MD of Diageo Reserve and global category director for Scotch
Reserve is Diageo’s portfolio of high-end brands, including Don Julio Tequila, Cîroc vodka and Tanqueray Ten. It represents 18% of Diageo’s total spirits sales across the globe.
Asked by The Spirits Business whether the group is looking to enter Cognac, Cristina Diezhandino, MD of Diageo’s luxury division, said Reserve is “constantly looking to see whether there’s more that can be done, and there will be various initiatives in the future”.
She added that Reserve has been given access to new categories through Distill Ventures – Diageo’s investment and acceleration programme for start-up brands.
This year, the group acquired Belsazar vermouth after the German brand ‘graduated’ from Distill Ventures. Belsazar now sits in the Reserve portfolio, and is working to expand its footprint in Europe, where the lower-abv drinking trend is taking hold.
According to Diezhandino, through Distill Ventures, Reserve “will be constantly screening the world to see if there are any conversations we should be having, or any new learning and business opportunities”.
“Even though our portfolio is very rich, the view I have is that the doors aren’t closed,” she said.
Reserve is “critical” to Diageo’s growth strategies in all markets, not just developed countries where premiumisation dominates, Diezhandino added.
“Ultimately, the most premium segments in every category are growing the fastest in every part of the world – there is no exception,” she said.
“Reserve is a critical component, and it will feature in strategies for every one of our markets. The excitement is there and we have set up the business teams in such a way that the learning for Reserve is present throughout the world.”
To read our full interview with Diezhandino, who is also global category director for Diageo’s Scotch business, see the June edition of The Spirits Business magazine, out now.