Diageo: New Agency Model; Eyeing Cuervo?

  • April 6, 2011
Alcoholic beverage giant Diageo is abandoning the concept of designating a "lead" agency in favor of a system in which the agency with the "best idea" will lead the brief, regardless of the discipline or media channel, reports U.K.-based Marketing Magazine.

Diageo GB marketing director Philip Gladman recently unveiled the collaborative plan to agencies. The change follows Diageo's 2010 restructuring of its global marketing department in favor of an approach emphasizing category leadership. Diageo is also reassessing its marketing mix to better reflect social and other newer media, per Marketing.

Meanwhile, speculation that Diageo intends to bid to acquire world-leading tequila brand Jose Cuervo is heating up. Diageo, which distributes and markets Cuervo tequilas and products internationally on behalf of trademark owners Tequila Cuervo La Rojena S.A de C.V. and Tequila Cuervo S.A. de C.V, is thought to have the upper hand over potential competitive bidders such as Pernod Ricard, Brown-Forman, Fortune Brands Inc., InBev and Molson Coors, reports Zacks Equity Research.



Now, the Cuervo brands distributed/marketed by Diageo is again expanding, as Cuervo launches Jose Cuervo Authentic Light Margarita, a low-cal (under 100 calories) option, as well as a no-alcohol, zero-calorie margarita mix. While the competition to buy Cuervo, if it emerges, is expected to be "stiff," Diageo is "expected to leave all behind" because of its distribution rights, notes Zacks.

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