How Diageo moved from a food and drinks group to branded drinks

The merger created one listed group

Diageo dates the merger of Guinness and Grand Metropolitan to 17 December 1997. It issued shares in the combined company, and the predecessor share certificates ceased to be valid. The listed company's new name covered several existing businesses. Source 1 Source 3

Pillsbury moved to General Mills

Diageo completed the transfer of its worldwide packaged food operations, including Pillsbury, on 31 October 2001. The annual report records an equity holding in General Mills following the transaction, so the deal changed operating control while leaving a financial interest at the time. Source 2

The drinks portfolio expanded at the same time

Diageo acquired selected Seagram spirits and wine operations in 2001, including Captain Morgan and Crown Royal. The annual report identifies disposal of the Malibu brand as a condition of the acquisition, showing how an asset purchase could also require a sale. Source 3 Source 2

The restaurant disposal narrowed operating scope again

Diageo completed the Burger King disposal on 13 December 2002. Its 2003 annual report continued to account for the part of the year before the sale and recorded financial commitments associated with the deal. The restaurant chain left group operations while certain financial exposures continued. Source 2

Sources

• Diageo shareholder centre, ordinary shares
• Diageo 2003 annual report filed with the US Securities and Exchange Commission
• Diageo corporate history