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Performance and outlook

Engaging our customers and consumers on social and environmental issues helps build our brands while promoting positive changes in attitudes and behaviour. We’re committed to improving the social and environmental impact of our products and marketing without compromising the brand experience.

Performance

Our work to connect or collaborate with customers and consumers by its nature meets diverse interests and needs around the world. As such, social and environmental programmes tend to be measured at the brand or customer level rather than rolled into global metrics. The one exception is our commitment to quality, which we manage consistently across the business.

Engaging consumers

Ten of our 14 global strategic brands launched consumer-facing campaigns related to sustainability and responsibility this year.

Brands

Diageo directly or indirectly funded over 300 responsible drinking programmes this year and many of them used our brands as the main vehicle to deliver the message. These have varying forms of metrics and outcomes. Many of these programmes engage consumers around responsible drinking - for example Johnnie Walker, along with Formula 1 driver Mika Hakkinen, collected about 850,000 pledges from consumers never to drink and drive (see a film on the programme: http://bit.ly/GYRJlv). Others aim to engage consumers on social and environmental causes - for example Buchanan's recruited over 6,500 consumers to donate four hours of their time each to local causes in Latin America. Read more about how we are engaging consumers through our brands.

Beyond consumer-facing campaigns, our brand teams contributed to our Sustainability & Responsibility Strategy in other ways, referenced throughout this report. These include Captain Morgan's sustainable packaging renovations or Baileys' work to develop a sustainable cream initiative in Ireland. Product innovations have also made a contribution, for example Sterling Organic wines made with organic grapes, or Senator Keg beer which offers low-income consumers in Kenya an affordable, safer alternative to illicit, and sometimes harmful, alcohol.

Working with customers

We produce and market our brands, and consumers buy them, through retailers who are our customers. Understanding our customers means taking account of their diversity - from global supermarket chains to small liquor stores to restaurant owners. Understandably, much of our work with customers is local in nature. Globally, however, we have launched nine sustainability and responsibility programmes with our largest global customers around the world, including Walmart, Carrefour and Metro.

Working with customers

The metrics vary by customer programme and primarily focus on responsible drinking. For example, we trained nearly 20,000 barmen across Asia Pacific to become responsible servers of alcohol. We also partnered with Sainsbury's, Heineken, and Drinkaware in the United Kingdom to create a responsible drinking campaign focused on portions and standard units control in 230 Sainsbury's stores. Diageo Benelux is working with Carrefour Belgium on improving the way employees communicate responsible drinking to consumers, and the 'What's your DRINKiQ?' game toured Carrefour Planet stores for two weeks in January 2012.

We are starting to work with customers on the broader sustainability and responsibility agenda, for example our recycling programme in Brazil, Glass is Good. Read more about how we are working with customers.

Ensuring the highest quality

Our high quality and food safety standards are designed to address the entire spectrum of quality from the smallest 'defect' such as a tiny label tear to an 'incident' when a larger batch of product is found to be below the required standard. We want to improve our quality performance continuously and we set ourselves stretching targets every year. This year, we were proud to reduce defect levels by 32% and quality incidents by 75%.

Outlook

We're determined to ensure that our drive to become more sustainable truly supports the experience and quality of our brands. We have always worked hard to be world-class marketers - building brilliant brands and nurturing our consumer relationships. Based on these relationships and consumer insights, we hope to do even more to encourage our consumers and customers to make more sustainable choices.

We will continue to search for insights into the aspects of quality that matter to our customers and consumers, and we are determined to fulfil the promise we make to them every time they buy our brands. With this in mind, we have set ourselves the following challenging targets:

  • To reduce our defect rates to world-class levels by 2015
  • To eliminate all customer quality incidents by 2015
  • To install externally accredited world-class quality systems at all our sites by 2014
  • To build a quality culture based on pride in our brands (based on our quality engagement tool)
  • To be rated as best for quality by our customers and consumers (measured through customer satisfaction surveys).