CASE STUDY 6.a
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Feb 20, 2024
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Case Study 6a
Why is local sourcing so important to Diageo? Diageo is one of the top alcoholic beverage producers in the world. It utilizes over 130 different sites around the world where they can locally
source for their supplies. The company focuses on staying sustainable with the sourcing of their products because of the effects that climate change has had on our planet. They do this by cutting back on their water usage, as well as carbon emissions and sustainable packaging making sure they leave a positive impact to fight against climate change.
Since Diageo took over Meta Abo Brewing, they have worked together to make sure to be as sustainable as possible when local sourcing. Not only does this help the locals of Ethiopia, where they have opened a site, but it also helps Diageo, Meta Abo, as well as our whole world. With sustainability being at the core of this company, the CEO had created a new alliance for food and nutrition security that was released in 2012. This included help from various African leaders that looked to increase investments where they were needed, as well as expand the potential for rapid and sustainable growth in Africa. The new alliance would have many positive outcomes not only for the food industry but for the people of Africa. In the document it stated that in ten years after the release, it would be estimated that over fifty million people in Africa would be out of poverty because of the large economic growth. With sustainable growth of food in Africa, companies would be able to move from big corporate sourcing methods to more effective and intimate sourcing sites throughout Africa.
Not only are there all these substantial benefits for Ethiopia and Africa in general, but there are also benefits for Meta Abo Brewing aside from sustainability. Showing how devoted you are as a company to fight for climate change creates a strong brand image. It gives customers a sense
of reliability and trust in the company to do what is right and makes a reason for these customers to stay faithful in Meta Abo. Additionally, with being able to locally source at new sites it drives down prices because they no longer must import their product from multiple sites all over the world. All these different reasons only bring a positive impact to Diageo, Meta Abo, and the African government. Keeping the objective of remaining sustainable should always be one of the main goals for Diageo.
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