APPLICATION FORM Award Category: Making Marketing Simpler Program / Project: Captain Morgan Launch Peru Name (Group or individual): Francisca Rios, Guillermo Barclay

Market / Cluster: Peru, South LAC

Rum is the biggest Spirits category in Peru, accounting for 730.000 9L cases (2009 – IWSR) representing 48% of the size of total spirits. Rum is consumed mainly in Release and Affiliation ocassions, where release is the second biggest source of volume within spirits. The only Diageo brand competing in release is Smirnoff, but because the vodka category is not developed we have a very small participation on release motivation. The biggest competitors in this motivation are local rums, specially Cartavio with 64% of total rum volume and secondary imported rums with Appleton in the leading position, but with not a clear brand equity proposal.

Context: One of Peru’s main priorities is to grow out of scotch, category that represent over 90% of today business. In order to succeed we had no doubt we needed to enter with a strong, international brand the biggest spirits category in the market, rum. Rum in Peru accounts for 730.000 9L cases (2009 – IWSR) earning 48% of the size of total spirits. It’s a very attractive business that we were not participating. Local rum Cartavio and Appleton are the big winners, with no strong competition until now. During july 2010, with a totally new Innovation support in Peru we decided to launch Captain Morgan as our first spirits Innovation project, increasing Peru business and supporting the brand on its goal on making Captain Morgan huge across the globe becoming our next global brand. The challenge was launch Captain Morgan prior to summer season (Jan . March), a strong consumption peak when consumers are open to try new brands, so we aimed for November.

Brief description of the activity:

After a great kick off meeting (July 2010) we worked with regional and local supply, finance, sales and with the great support of Captain Morgans Global team.

With great team work, everyone knowing their responsibilities, efficiency and most important, great passion, we were able to start sales the last week of October with great distribution for the brands launch during mid November.

Captain Morgan was launch in 3 months from first conversations until the product was available for sales Local Captain trained and drivers (KTA´s & POS) ready. Successful Diageo Peru launch event on Nov 16, connecting the entire office with the product and Captain personality Great customers and target consumers launching event on Nov 17 with good Captain and product PR Summer launching plan, including trials and KTAs, implemented with feedback from distributors, customers and consumers Sales plan was pretty aggressive, happy with the results as sales are on line according to plan Planning on going for a more for more due to good results and great team engagement

Objective: Captain Morgan Original Spiced Rum will lead the imported release spirits market in Peru sourcing volume from Appleton and

upper Cartavio varieties to be launched in H1 F11 (Innovation Kick off meeting in early July).

Detail of outcome achieved: Project timings of 5 months was very challenging. We achieve it in 3 months (from initial kick off July-10 to launch Oct-10) Project was launched 3 months ago, and sales are coming along plan