What’s wrong with Diageo?

Cragganmore - a Diageo distillery

In recent times, it’s become fashionable to moan about and berate the big boys of the whisky game.   Let’s not beat about the bush – I refer specifically to malt snobs, blogs, and the cognoscenti getting stuck into the likes of Diageo and whinging about either their bottlings, the quality of the latest release or the price tag attached, or perhaps even lamenting that a particular expression isn’t made available in their local market.  “What’s wrong with Diageo?” is a question you might hear asked occasionally.

Well, as fashionable as it is to bag and complain about Diageo, I’m going to do the opposite. I’m going to stand up for them. Not that they need the likes of little old me to get vocal about anything on their behalf, but I figure some balance and perspective is due.  This article was originally published under the title, “Standing up for the big boys“.

Through the myriad of tastings I host each month and the events I attend, I speak with and hear plenty of people sprouting forth about whatever latest “affront” displeases them. The comments generally follow the same old themes, which I’ll loosely collect and summarise thus:

“Why is the new xyz release so expensive?”

“Why do they only bottle a 12yo? Why don’t they bottle more expressions, like a cask-strength version or an older age statement?”

“Why do they chill-filter and bottle at only 40%”

“They’re too big for their own boots.” (A common attitude amongst Australians, who aren’t exactly fans of tall poppies).

As a consumer, I understand the above sentiments; what I’ve never understood is the vitriol attached or the justification these folks draw upon.

In the case of Diageo’s whiskies, Australia is an interesting scenario and market, as virtually 100% of its whisky marketing budget goes towards the Johnnie Walker expressions. In actual fact, it was only recently they took back on the distribution of their malts – previously, the single malt lines were distributed by third parties! So if Diageo weren’t even distributing their own products in Australia, that gives you some insight as to where their marketing & focus was directed! I’ve never forgotten an incident nearly 15 years ago when I met with one of Diageo’s Marketing Executives to discuss a new project that involved the promotion of their single brands and some sponsorship. The end result was a total lack of ability (note, not willingness, mind you) to provide or supply any malt whisky support, although they did offer me the position of Johnnie Walker Brand Ambassador.  Which I graciously but politely declined.

Anyway, back to my main thrust: Diageo is under no illusions and they know which side their bread is buttered on. As Nick Morgan said a couple of years ago, “Diageo is a blended whisky company”. Yes, they might own more malt distilleries than anyone else, but let us never lose sight of the fact that 90-95% of all whisky sold today is still blended whisky, and Diageo needs their malt distilleries to feed the massive thirst for Johnnie Walker, J&B Rare, Bells, etc.

In anticipation of new and growing markets opening up for the likes of Johnnie Walker, Diageo are investing heavily in building new distilleries and expanding existing ones to supply the necessary malt. In the last few days, I’ve visited the recently modernised Linkwood; the currently-under-expansion Teaninich, Mortlach, Glendullan, and Glen Ord distilleries; and I was lucky to get to Clynelish before that distillery also gets doubled in size.

But it’s only after visiting many of Diageo’s distilleries that you suddenly notice something. And if you thought the preceding paragraphs were starting to get a little dull and going nowhere, I’ve finally reached my main point: Whilst many modernised distilleries are becoming more and more automated (particularly the Chivas Bros distilleries), many of Diageo’s distilleries are still small, quaint, and – dare I say it – traditional. For example, of the 13 distilleries left that still use worm tub condensors, most of them are Diageo distilleries. Many distilleries today take their middle cut when either the computer, the timer, or the flow-rate monitor tells them to. Yet, at a number of Diageo distilleries, the stillman is still doing the manual water test and using the human hand to take the cut.

There are a number of Diageo’s distilleries that are still relatively small and – when combined with their location and position – must surely be costly and inefficient plants to run and maintain. I refer to the likes of Oban, Cragganmore, Royal Lochnagar, etc. Yet, even though behemoths like Roseisle have come to exist (with similar new behemoths on the way), Diageo are still carefully – and lovingly – creating these characterful whiskies.

(Of course, there still exists an undercurrent of scepticism and a concern that Diageo may indeed close down some of these smaller, less efficient plants once all the new and refurbished ones are up and running. Should that come to pass, this little essay will suddenly be off the mark and redundant. But, until then, let’s get back to those characterful whiskies.)

“Character” is a big word in whisky production right now, and it’s a word I’ve heard a lot whilst speaking with stillmen at numerous distilleries in the last few days. When you speak to these guys – many of whom are seeing their skill set being replaced by software – you instantly spot the pride and passion at the places where they’re responsible for the character of the whisky.   Yes, the shape of the stills plays an enormous role, but then why is it that things change when the human hand is taken away? I won’t name names, but everyone all over Speyside had heard and shared with me that the character of the spirit coming out of Distillery X has changed tremendously since the computers and software were installed to start running the stills.

The point is, having visited 90-odd distilleries and seen the behind-the-scenes stuff, my observation is that Diageo is not the heartless machine that many whisky enthusiasts purport it to be. The other thing that you pick up if you spend enough time with the right people is that Diageo is clearly a good employer. Their people speak proudly and warmly of the company. As big as the company is, you get the vibe that they’re all part of a large yet happy family. From distillery managers to visitor centre staff to the guys on the floor in production, Diageo’s team are happy campers. And happy people in happy work places produce happy whisky. Which means whisky drinkers should be happy too.

Cheers,
AD

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Author: AD

I'm a whisky writer, brand ambassador, host, presenter, educator, distillery tour guide, reviewer, and Keeper of the Quaich. Also the Chairman and Director of the Scotch Malt Whisky Society (SMWS) in Australia since 2005. Follow me on Twitter and Instagram @whiskyandwisdom and also on YouTube at /c/whiskyandwisdom

One thought on “What’s wrong with Diageo?”

  1. A nicely worded defence of the ‘Big Boys’, Andrew. And I look forward that that next scintillating Johnnie Walker expression presented to us ‘blind’ at a future single malt tasting session, just to dumbfound the participants! 🙂

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