UK: Supermarket anger at Diageo GB trade terms
Customers of Diageo Great Britain are annoyed at a new standard set of trade terms, announced by the drinks group this week, just-drinks understands.
Some multiple retailers were "spitting mad" at the timing of the new terms, one analyst close to the situation told just-drinks today (5 September).
He said some customers had been dismayed to learn of the announcement via the trade press, rather than directly from Diageo Great Britain. There was also concern that the implementation of the terms, rolled out from this month, may disrupt the oncoming Christmas trading period.
Diageo Great Britain announced earlier this week that it had introduced a new standard set of terms for its trade customers, including a price list, in order to drive spirits sector growth. It said the new terms "required all customers to deliver a variety of proven sales drivers".
Sales director David Smith added: "We believe there is a potential GBP500m (US$892m) of incremental value for the industry by concentrating on key development areas."
The analyst speaking to just-drinks today said Diageo GB appeared to have "underestimated how sensitive customers are to this issue".
But, he added, the terms could be a neat solution for Diageo in the longer term. Other companies would be "watching closely" to see if the terms worked, with a view to adopting a similar approach, he said.
A spokesperson for Diageo GB was not immediately available for comment this afternoon.
To say that Ketil Eriksen had to hit the ground running when he became CEO of Absolut six months ago would be an understatement. Overseeing a massive reorganisation and dealing with the effects of the...
Both China and the US have in different ways been exciting growth markets for the drinks sector in recent years but for obvious reasons neither is quite what they were. Chris Losh looks at how both ma...
The US economy declined by 6% in the fourth quarter of 2008, more steeply than predicted, as fresh industry figures this week indicate that spirits sales have continued to weaken....
Rémy Cointreau is to restructure its global travel retail division once the French drinks group leaves the Maxxium distribution partnership in April....
See the top stories published on just-drinks this week....
Diageo plans to expand Windhoek beer across Africa after acquiring the global rights to produce and distribute the brand outside of its key South African and Namibian markets....
A 70% tax hike on ready-to-drink alcoholic beverages in Australia is on a knife-edge as the government faces widespread rebellion in the country's Senate....
Australia's tax hike on ready-to-drink alcoholic beverages will be expanded to close a loophole allegedly allowing drinks companies to escape payments, the country's government has said ahead of a cru...
- CCA - Coca-Cola's Canary in the Mine
- Comment - Hybrid Spirits: Innovation or Laziness?
- just The Preview - Pernod Ricard's Q4 & FY
- just The Preview - Brown-Forman Q1
- Comment - The Race Downhill for Treasury
- Mast-Jägermeister targets UK off-trade boost
- Brown-Forman unveils Jack Daniel's UK push
- Champagne will not regain lost ground until 2018
- Cognac FY sales slide as China troubles bite
- SABMiller exec to become CFO at Beam Suntory