Today, outstanding results have been achieved through a proven and robust business model. In four years Diageo Reserve has more than doubled its business to over £1 billion and in the last financial year, ended 30 June 2012, it generated strong double-digit growth in both developing and developed markets as well as strong growth across all categories. Having increased share from 10% to 15% in the last three years, Diageo Reserve is now the Super Deluxe spirits category leader.*
This proven and effective business model is based on three strategic pillars:
A specialised sales force, set up to win in top accounts, possessing extensive category knowledge and the luxury skills to sell the portfolio. Key accounts are vital to the business as they influence trends and are a vehicle for reaching high net worth individuals. The dedication of a specialised sales force who are experts in understanding the needs of top customers and can dedicate time to build personal relationships with key decision makers is a bedrock of the model.
Luxury marketing excellence incorporates gifting and limited editions, physical spaces, spectacular events and World Class, which is transforming fine drinking culture around the world. These growth drivers provide a platform to engrain Diageo Reserve luxury spirits into the fabric and daily lives of target consumers and looks to address trends that we are currently seeing in the luxury landscape.
Diageo Reserve also invests heavily in Super Deluxe innovation, keeping brands fresh and relevant for today’s consumers. Recent innovations include John Walker & Sons Odyssey, Johnnie Walker Platinum Label, Johnnie Walker Gold Label Reserve, Ciroc flavours and Diamond Jubilee by John Walker & Sons.
While economic conditions may vary by market, we are still seeing favourable trends in luxury today with a move to more affordable luxury in austere times and a move from ostentatious displays to focus on craftsmanship, quality and experiences. Our agile and dynamic business model, broad portfolio across all categories and geographical spread in developed and developing markets allows Diageo Reserve to tap into these opportunities.
*Source: IWSR 2011 Super Deluxe $40+ Spirits Volume including Cognac