Diageo

Food & Drink Weekly, June 30, 2003

As part of the reorganization of its drinks distribution arrangements in a number of states, Diageo has reached an agreement with Magnolia Marketing Co. to discontinue their distribution relationship in Houston and Dallas, as well as their brokerage relationship in Alabama and Mississippi. The change will take effect from July 1.

Diageo said the agreement also resolves outstanding issues related to Diageo brand moves in Arizona and Louisiana in 2002. Glazers Wholesale Liquor is to take over distribution for all Diageo brands in Houston and Dallas. The deal completes the consolidation of Diageo's distribution network in Texas. Meanwhile, The Goldring/Block drinks wholesaling group and Diageo/Schieffelin & Somerset have announced that they have come to a mutual agreement to sever all remaining relationships between the two companies in Arizona, Texas, Louisiana, Mississippi and Alabama. The terms of the deal have not been made public.