Blog: Olly WehringDiageo v Bacardi - Tick, tick, tick, tick... BOOM

Olly Wehring | 24 February 2010

Today's top story is certainly a cockle-warmer on a cold, damp Wednesday in February.

Diageo didn't so much fire a warning shot across Bacardi's bows yesterday (23 February), more set about the boat itself... with a bazooka. Not only does Diageo's statement make for an interesting read, but it is also a pretty long one – take a look for yourself here.

This is most unlike Diageo, which usually prefers to play the strong, silent type when it comes to disputes - witness how the firm chose to keep its head when all about it was losing theirs and blaming it on Diageo during last year's Scotland closure row.

Our take on the surprise reaction? Well, Diageo has been getting heat ever since it announced its move of Captain Morgan operations from Puerto Rico to the US Virgin Islands back in 2008.

A brace of more recent attacks, including one from Bacardi, however, was one poke through the bars too many. I've heard that Diageo was tiring of having to rebut the allegations to each individual who challenged them, choosing instead to give its full (and I mean full) and frank take on the matter.

Bacardi's response – all of three sentences - is short and sweet, much like that of the Puerto Rican government – two sentences.

Yet, in such a short burst of words, the two ask whether the US taxpayer is the one getting a rum deal here.




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