Controversies
In December 2003, Diageo provoked controversy over its decision to change its Cardhu brand Scotch whisky from a single malt to a vatted (blended) malt whilst retaining the original name and bottle style. Diageo took this action because it did not have sufficient reserves to meet demand in the Spanish market, where Cardhu had been successful. After a meeting of producers, Diageo agreed to make changes. In 2006, the Cardhu brand quietly changed back to being a single malt.
In July 2009, Diageo announced that, after nearly 200 years of association with the town of Kilmarnock, Scotland they would be closing the Johnnie Walker blending and bottling plant as part of restructuring to the business. This would make 700 workers unemployed and caused outrage from press, local people and politicians. A campaign against this decision was launched by the local SNP MSP Willie Coffey and Labour MP Des Browne. A petition was drawn up against the Diageo plans, which also involves the closure of the historic Port Dundas Grain Distillery in Glasgow. Part of the Johnnie Walker operation will be moved to a Diageo site at Leven, Fife, with the creation of 400 jobs there. As part of this expansion in Leven, Diageo culled a herd of roe deer living on the site to make way for new buildings.
In February 2009, it was reported in The Guardian that the company had restructured itself so as to avoid paying tax in the UK
The National Puerto Rican Coalition plans to run a series of ads in New York City and Puerto Rico urging a boycott of Diageo-owned alcoholic drinks to protest the corporation’s production move of its Captain Morgan rum from Puerto Rico to the U.S. Virgin Islands, which will provide it with $2.7 billion in tax benefits over 30 years.
On 9 May 2012 Scottish Craft Brewery Brewdog revealed that Diageo had threatened to withdraw funding from BII Scotland's annual awards if Brewdog was to be named winner of the Best Bar Operator award. Diageo was forced to issue an apology.
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