Diageo has launched its new luxury division, the Diageo Luxury Group, to drive the growth of its premium brands priced at US$100 or more, focusing on expanding its presence in the high-end spirits market.
Julie Bramham Appointed as Managing Director of Diageo Luxury Group
Julie Bramham has been appointed managing director of Diageo’s newly formed Luxury Group, overseeing brands like Brora, Port Ellen, and Johnnie Walker Princes Street, along with Justerini & Brooks, a leading UK fine wine and spirits merchant. Bramham, who previously served as global brand director for Johnnie Walker, aims to combine heritage with innovation to expand Diageo’s luxury offerings and experiences worldwide. “We are privileged to hold Diageo’s finest assets, and with a focus on expansion, we’re well-positioned to meet global client needs,” she said.
Luxury Spirits Market Sees Explosive Growth
According to IWSR Drinks Market Analysis, the luxury international spirits category is a US$12.7 billion industry, growing at a rate twice as fast as the overall international spirits market. Since 2020, it has been the fastest-growing price tier in international spirits, with a compound annual growth rate (CAGR) of 12% in volume and 18% in value.
The Diageo Luxury Group is focusing on key markets like global travel retail and major cities, with a dedicated arm targeting growth in Great Britain to capitalize on the expanding luxury spirits sector.
Introducing Diageo Luxury Company (DLC) Great Britain
Diageo launched the Luxury Company Great Britain (DLC GB), led by Hinesh Shah, a 14-year Diageo veteran. Shah emphasized that Diageo’s luxury brands like Johnnie Walker, Don Julio, and Casamigos have already established a strong presence. Now, the focus is on elevating these brands further through strategic trade partnerships and enhanced marketing efforts.
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The DLC Great Britain will focus on growing five key luxury spirits brands: Don Julio, Casamigos, Johnnie Walker, The Singleton, and Cîroc. These brands will target a broader price point, beginning at £30 (US$38) and extending to the premium and ultra-premium levels.
Here’s a breakdown of Diageo’s luxury spirits sales growth and trends over recent years:
| Fiscal Year | Organic Sales Growth (%) | Key Factors |
| 2021 | 16% | Post-pandemic recovery, premiumization surge, increased demand for high-end brands like Johnnie Walker and Casamigos. |
| 2022 | 21% | Continued premiumization, robust sales in emerging markets, expanded high-end offerings. |
| 2023 | 10% | Stabilized growth after peak recovery, increased competition, focus on sustainable and luxury spirits. |
| 2024 | 6% | Slower growth due to cautious consumer spending, especially in North America, but steady high-end demand across regions. |
Diageo India has experienced notable growth in its sales over recent years, largely due to a focused premiumization strategy and increased demand for high-end spirits in the country. Here’s a breakdown of the sales data:
| Fiscal year | Net Sales in (INR Crores) | Growth Rate |
| FY21 | 7,840 | — |
| FY22(Rebased) | 5,940 | — |
| FY23 | 7,183 | +20.9% |
Diageo’s ambition to become a dominant player in the high-end spirits space, leveraging a combination of traditional craftsmanship, innovation, and a focus on consumer trends.
