Diageo shuffles pack in Japan

Diageo has announced a major reshuffle of its distribution arrangements in Japan.

From 1 October, the company’s joint venture with Moet Hennessy, MHD, will focus exclusively on marketing and distributing luxury and super-luxury malt and blended whisky brands such as Johnnie Walker Blue Label, Johnnie Walker Gold Label, Johnnie Walker Green Label, Old Parr and Talisker.

Diageo will also transfer a number of specialist luxury spirits to MHD including Ron Zacapa Rum and Bulleit Bourbon.

Kirin Brewery, which already looks after the distribution of Kilkenny, Smirnoff Ice and Guinness in the region, will handle 13 more brands including Johnnie Walker Black Label, Johnnie Walker Red Label, Smirnoff, Tanqueray, Baileys and I W Harper, also effective from 1 October.

Diageo said the realignment reaffirms the strength of its commitment to MHD and Kirin, and will streamline distribution of its products while playing directly to the core strengths of both partners.

A Diageo statement said: “MHD’s long-standing expertise in managing luxury and super luxury brands will drive growth in these categories, while Kirin’s sophisticated nationwide distribution network provides an optimal platform from which to expand Diageo’s premium beverage alcohol business in Japan.”

The announcement follows the recent formation of Diageo Kirin Company Limited, a joint venture between Diageo and Kirin established to develop overall business strategy for Diageo premium brands in Japan and to provide nationwide brand marketing support to both companies.

The joint venture, which is 51% owned by Diageo and 49% by Kirin, began operations on 1 June this year.

Alan Lodge, 13.07.2009