The point has been repeatedly made that the power of the Diageo's, et al, is immense and carries through to all levels of spirits production and sales. From lobbying for and receiving multi-billion dollar special subsidies in the USVI, to massive influence over advertising placement, distribution, shelf position and even in retail pressure on hotels and bars. And oh yeah...
Even on the rum promoters. Amazing.
Here's a prime example of how Diageo is suing a large distributor (Major Brands) in Missouri to cancel their contract because they feel their labels aren't getting enough attention:
(Source: Beverage Daily)“The quality of Major Brand’s performance on behalf of Diageo, and the business relationship between Diageo and Major Brands, are unacceptable,” Diageo says in its complaint.
“Major brands profits substantially from selling Diageo’s products, but fails to devote even close to equivalent resources to the promotion and sale of Diageo’s products.
“Far from acting in a collaborative way consistent with a community of interest, Major Brands acts solely in its own interest,” the drink’s giant adds.
It is noteworthy that Major Brands has served Diageo for two generations of the family, and feels they were blindsided. I don't doubt they were. Diageo appears to be quite the bully. They want to control what an independent distributor carries and promotes. Small and independent labels don't stand a chance...
I urge you to read the whole article - it's worth your time...
