Diageo to regain full distribution control in France

FRANCE – Diageo has announced that it will recover the distribution of all its brands currently managed by the joint venture Moët Hennessy Diageo France (MHD) in France. 

This follows an earlier update in March 2024, where Diageo outlined a phased approach to transform its distribution model in France by establishing its own in-market company, Diageo France. 

Effective January 1, 2025, Diageo France will assume responsibility for distributing Johnnie Walker, J&B, and Gordon’s in France.  

This change follows a successful initial phase where Diageo France took over the distribution of other in-country brands earlier this year.  

Initially, the remaining Diageo brands were to be transferred in a second phase in September 2025. However, Diageo has expedited this process, and these brands will now be distributed by Diageo France starting January 1, 2025. 

“After many years of collaboration, allowing Moët Hennessy and Diageo to evolve and grow, the distribution of the Moët Hennessy and Diageo portfolios in France will be fully differentiated as of January 1, 2025, at which time their commercial cooperation through Moët Hennessy Diageo France will be concluded,” the statement read. 

Diageo also clarified that this move does not affect its partnership with Moët Hennessy outside France, and its 34 percent stake in the company remains unchanged. 

Diageo India CEO summoned 

Concurently, the CEO of Diageo’s Indian business, Hina Nagarajan, has been summoned by New Delhi anti-corruption police.  

Reuters reported that the investigation concerns billing and discount practices involving government agencies that run liquor retail shops between 2017 and 2020. 

Nagarajan, who is the CEO of United Spirits and a member of Diageo’s global executive committee, has been asked to appear before police and provide several documents related to company sales.  

The confidential July 4 police notice directed her to appear in person or through a company representative to join the investigation. 

Diageo India confirmed receipt of the notice and stated that the company would fully cooperate with the authorities.  

A spokesperson for Diageo India said, “We are in the process of sending in an authorised representative, as sought in the notice,” adding that the company could not comment further as the investigation was ongoing. 

The spokesperson added that such notices from regulatory authorities are normal, saying that they might have been sent to other manufacturers as well.  

“This notice requires information to be submitted by a representative for the company pertaining to its operations between the period of 2017 and 2020, and not specifically from the Chief Executive Officer. We are cooperating with the authorities as we have always done,” the spokesperson said. 

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