Distribution Agreement

Diageo PLC
07 February 2008


Diageo signs global distribution and joint marketing agreement for Zacapa
                                 Centenario rum

                 Super premium Guatemalan brand to form part of

                       Diageo's Reserve Brands collection


London, 7 February 2008 - Diageo, the world's leading premium drinks business,
today announced that it had been granted a three year distribution and joint
marketing agreement by Industrias Licoreras de Guatemala group of companies for
the Zacapa rum brand.  The agreement will run from 1 April 2008 and will give
Diageo global distribution rights although some countries in Central America
including Guatemala will be excluded. At the end of the three years Diageo has
an option to buy a 50% equity stake in the brand subject to performance
criterion.

The Zacapa rum range includes Zacapa Centenario 15, Zacapa Centenario 23 and the
ultra premium Zacapa Centenario XO.   The Zacapa brand has been recognised
internationally as one of the best rums in the world receiving multiple,
top-tier awards and accolades.

Randy Millian, Managing Director of Diageo's Latin America & Caribbean Hub said:

'Some of the most iconic drinks brands in the world are produced in Latin
America & the Caribbean, from Don Julio tequila to Red Stripe lager, and we are
delighted to be given the opportunity to distribute and market Zacapa, one of
the most acclaimed rums in the world. The Zacapa brand will widen our brand
range within the second largest and fastest growing major spirits category in
the world and diversify our Reserve brand collection, which includes such super
premium brands as Johnnie Walker Blue Label and Buchanan's Red Seal.'

Roberto Garcia Botran, President of Industrias Licoreras de Guatemala group of
companies said:

'We are very pleased that Zacapa, which is our family crown jewel, will now
realize its full potential by being distributed by the world's leading premium
drinks company, Diageo. We are proud to work with Diageo and delighted that the
Zacapa brand will form part of Diageo's Reserve collection.


                                     -ENDS-



For further information

For Diageo Investor Relations
Catherine James                                            Sarah Paul
[phone]                                      [phone]
[e-mail]                       [e-mail]


For Diageo Media Relations

Stuart Kirby                                                     Jennifer Crowl
[phone]                                          [phone]
[e-mail]                              [e-mail]

Isabelle Thomas                                            Rachael Shaw
[phone]                                      [phone]
[e-mail]                       [e-mail]


For Industrias Licoreras de Guatelama

Naomi Newton
[phone] x203
[e-mail]



Notes to Editor


About Diageo

Diageo is the world's leading premium drinks business. With its global vision,
and local marketing focus, Diageo brings to consumers an outstanding collection
of beverage alcohol brands across the spirits, wine and beer categories
including Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, Captain
Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageo
trades in some 180 countries around the world and 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


About Industrias Licoreras de Guatemala group of companies

Industrias Licoreras de Guatemala has developed a successful career of nearly 90
years, recognized worldwide since 1998 for the quality of its products, which
are part of the Guatemalan pride. Industrias Licoreras de Guatemala has its own
distillery and four production plants, invests steadily in the incorporation of
technology, and has direct operations in the countries of the Central American
region.


About Zacapa  Rum

Zacapa rum is the result of a unique process of development, aging and
packaging, which is distinguished by a combination of unique features such as
Guatemalan soil, climate and raw materials used in the production process. This
rum has been developed based on knowledge, experience and efforts of those
working in Industrias Licoreras de Guatemala group of companies. Over the past
few years, Zacapa rum has increased its presence in Guatemala and in the most
important international markets thanks to the various awards received for its
quality and the goals it has achieved through the marketing plan that began more
than a decade ago. The process of development, aging and packaging Zacapa rum
takes place in several regions of Guatemala, and it is an example of the
national industry in the generation of sustainable development areas and for his
continued commitment to meet the consumer needs in Guatemala and worldwide.

Zacapa rum is produced high up in the verdant Guatemalan countryside, under a
dramatic backdrop of soaring mountains and active volcanoes; Zacapa is
exceptional in that unlike most rum that uses molasses, Zacapa is produced using
only the sweetest, first pressing of sugar cane juice, referred to as 'virgin
honey.'  Zacapa rum uses a Solera System aging process, with the rum being laid
to rest in selected barrels that previously aged Bourbons, Sherries and Pedro
Ximenez wines; in the case of XO, the aging occurs in restored French Oak
barrels. The cooler altitude in its 'house above the clouds,' one and a half
miles above sea level, helps Zacapa develop its characteristic colour, body,
flavour and aroma.



                                     -ENDS-





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