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The Chief Officers' Network - your business advantage / Management / Business Strategies / Business Strategies: Canada's whiskey drinkers lose out in global auction

India, China and Russia are soaking up more and more of Diageo's brands including Bells, Grants and Johnny Walker.

This week, the Liquor Control Board of Ontario learned that, if it wants to continue to receive supplies of those (in the case of Johnny Walker, it's the Green Label that's at stake) and other brands, it's going to have to match the prices that the new markets are willing to pay. With around six week's supply in stock, Ontario is looking as if it's going to have to drink something else for the New Year parties.

LCBO says it agreed to meet the prices sought by Diagio for some of its products but some demands were too high.

Diageo supplies not only its own production but also that of some small, highly specialised single malt distilleries. LCBO has tried to keep these smaller, specialist products on its shelves at state-run outlets.

It's not just Ontario: other provinces are also having to make hard choices: one, New Brunswick, will cease importation of 11 brands.

Markets in South Korea and, surprisingly, Vietnam are also increasing rapidly adding to Diageo's supply and demand problems.

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