Diageo's Paul Clinton Proposes All-Industry Summit on Social Responsibility, Taxation; Meeting of Companies, Industry Associations Will be Held in Spring 2003.

Business Editors

BOSTON--(BUSINESS WIRE)--Sept. 30, 2002

Paul Clinton, Diageo President and CEO for North America, the leading integrated beer, wine and spirits company in the world, today called for an unprecedented summit of the beverage alcohol industry in the US to raise awareness of its commitment to the responsible use of the industry's products and to work together to prevent further increases in taxes on beverage alcohol.

The conference will be held in the spring of 2003.

The proposal was made in a speech at a meeting of the National Beer Wholesalers Association (NBWA), where Mr. Clinton said, "Everyone in the industry deeply believes in and practices social responsibility. Everyone in the industry deeply believes that taxes on all our products are already unreasonably high. I propose that the entire industry come together next spring in an all-industry summit to address just two topics: gaining better awareness and appreciation of our joint commitment to the responsible use of our products and working to prevent taxes on any of our products from being raised."

Mr. Clinton called on beer, wine and spirits suppliers, wholesalers and retailers, as well as the industry associations that represent them, to join Diageo in promoting these two critical issues in a cooperative manner and reported that the idea has been favorably received by many in the industry, including the leadership of NBWA. He indicated that he would actively seek the support of others in the industry, including The Beer Institute, Distilled Spirits Council (DISCUS), the Wine Institute, American Wineries, Wine and Spirits Wholesalers of America, American Beverage Licensees, the American Beverage Institute.

Mr. Clinton emphasized the potential for the industry in speaking together with one voice on these two key public policy issues of mutual concern, noting that some 1.6 million persons work in the industry, including some 1.3 million at the retail level. He cited recent examples of successful industry collaboration at the community level to promote social responsibility programs and encouraged moving that cooperation to higher levels. "Think of our potential effectiveness if we were working together, instead of at cross-purposes," he noted.

Mr. Clinton also highlighted Diageo's commitment to upholding the highest standards of social responsibility in its marketing efforts and in its joint efforts with distributors and retailers, and recognized the long-standing commitment of members of the NBWA to do the same. "Americans and American policymakers need to better understand and appreciate the major commitment we all make to the responsible use of our products," he said in his speech. "Efforts from the beer, wine and spirits segments are showing results, both in terms of greater awareness of the problems associated with underage drinking and misuse of beverage alcohol and in terms of a decline in drunken driving incidents. We are committed to continuing to be a part of the solution to these problems," he added later.

On taxes, Mr. Clinton noted that beverage alcohol is among the most heavily taxed of all consumer products and it is to the benefit of the entire industry - and consumers - to come together to prevent further increases in beverage alcohol taxes, which already account for more than half the price consumers pay.

About Diageo

Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wine and beer categories. These brands include: Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, and Beaulieu Vineyard and Sterling Vineyards wines.

Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands and performance, visit us at www.diageo.com.