Is Diageo adding to its craft spirits lineup?

Diageo, the London-based maker of Johnnie Walker and Smirnoff, has received TTB approval for five labels under the new “Well-Made” spirits brand.

The label applications were for a gin, rum, tequila, vodka and American blended whiskey called G, R, T, V and W, respectively.

Each of the applications indicated the place of origin as Connecticut, home of Diageo’s North American headquarters, with the exception of the gin, which cites Canada.

The Well-Made labels have a craft look, which could be in keeping with Diageo’s movement into the craft spirits business. In recent years, the owner of the craft-style Bulleit brands launched artisan spirits arm Orphan Barrel Whiskey Distilling Co., introduced experimental whiskeys under the Whiskey Union umbrella, and expanded Distill Ventures, its spirits accelerator, to North America.

“Very attractive market”

Diageo has said it’s going to focus more on its U.S. spirits business, where net sales grew 4 percent for the six months ended in December 2016.

“The U.S. spirits market is a very attractive market,” Diageo CEO Ivan Menezes told CNBC in January, just after the company reported half-year earnings.

However, Goldman Sachs downgraded its stock in March from neutral to sell amid concerns about pricing pressure and slower growth in U.S. spirits.

Tags