QualityG L O B A LU P D A T E DP O L I C YJ U N E2 0 2 2

Who does this apply to?All Diageo brands and associated products.All Diageo businesses and joint ventures andeveryone who works on or with them.We will achieve our Quality goals bycommunicating and applying this QualityPolicy across all aspects of the supply chainunder our control or influence, from suppliers toconsumers, from product design to manufacture.Our commitmentContextWe have the privilege of being temporary stewardsof many of the most successful and well respectedpremium drinks brands in the world. It is theresponsibility of all of us to ensure that we sustainand grow the reputation of these great brands forthe generations to come.We are committed to maintaining the very higheststandards of quality for the design of our brandsand for the delivery of safe products to our customersand consumers.Our products are foods and people must be able toconsume them with confidence. To support this, we arecommitted to full compliance with all quality relatedlegislative requirements in the market of sale.Quality is at the heart of our brands. It is derived fromthe heritage of the brands themselves and the skillsof our people, both past and present. The continuousimprovement of quality and the enhancement ofcustomer and consumer confidence in our brands is akey determinant in the long term success of Diageo.This policy sets out the framework by whichwe pursue our Quality aims.Our aim is to provide our customers and consumers withthe highest standards of quality, service and value in ourindustry, and this policy sets out the commitments wehave made to achieve this.Human Rights2

Core principles of the policyAll Diageo business leaders are expected to knowthe requirements of the Diageo Quality Policy andare responsible for motivating and training staff toensure that employees are able to discharge theirresponsibilities in relation to product and process quality.Brand & reputational qualityBrand quality is the most critical dimension of brandreputation. If consumer or trade perception of a brandis eroded through quality issues, then so too is thereputation and value of the brand and this damagemay be irretrievable. Maintaining and growing thequality reputation of our brands is central to Diageo’sshort and long term success and we can all play a role.As well as fully complying with any legal and globalquality standards in respect of product quality, businessleaders are required to have in place; systems andframeworks (including relevant Key PerformanceIndicators) that support Diageo’s intent to continuouslyimprove the quality of our brands.We can directly influence reputational quality in twokey dimensions:Diageo’s Quality Objectives are to design and producebrands in a way that:Design Quality: packaging and liquid designshould be aligned with the brand values andaspirations. The components and ingredientsused should be of a quality commensurate withboth the brand reputation and selling price. Ensures they are always safe for consumption andmeet all applicable regulations. Meets the needs of our customers and expectationsof consumers (safe, free from defects, fully functionaland consistent taste).Supplied Quality: the quality of each individualfinished product as experienced by customersand consumers (at the point of purchase orconsumption). Protects Diageo’s brands and reputation.Reputational QualityQuality of brand basedon consumers’ historicexperience and perceptionof the brand. brand history/story heritage/provenanceconsumer driftQualityProduct/Design QualityPresent Supply QualityQuality of the finishedproduct as experienced bythe consumer or customer.Quality of the design,liquid and materials ofconstruction. no defectsassembled correctlysatisfactoryfunctionalHuman Rights3excellent designpremium liquidhigh quality componentsfunctional

Shelf lifeCore principles of the policy (cont)The shelf life of the liquid should be determined througha combination of experience of similar product typesand through empirical testing.Design quality and product change controlBrand Design Quality must be credibly rooted in boththe historic traits of the brand and also represent thepresent and future aspirations of the product.The shelf life may be coded onto the packaging,depending on the nature of the product (e.g. RTD orSpirit) and the prevailing customer and regulatoryrequirements. The shelf life of packaging should bedetermined by climatic testing and the design/treatmentof the materials modified accordingly to accommodateconsumer and market requirements.Design quality must adhere to the global standards,processes and principles.Design Quality is owned by the Design Team and theBrand Owner and is subject to sign off by Gatekeepersthrough the Navigate process.Super Premium products and their packaging mayrequire special attention owing to elevated consumerexpectations and the possibility they may be stored fora long time.When designing, developing or renovating an existingbrand, the Design teams must consider objectiveswhich may sometimes be mutually exclusive, suchas Design for Quality (D4Q), sustainable packagingand gross margin.Food safety and complianceAll our brands must be safe to use and consume andcomply with applicable legislation. To achieve theseoutcomes, all products must:It is Diageo’s policy that quality should take priorityabove gross margin and above sustainability goals.Any significant change to a product (ingredients;components or finished product) must be documentedand authorised using the Navigate process. Levels ofauthorisation should be proportionate to risk (probabilityof failure and scale of potential commercial impact). Undergo an annual product safety risk assessmentfor due diligence purposes and undergoanalytical appraisal where this is deemednecessary. Documentary evidence of the riskassessment and any findings must be retained.Global standards are in place to govern the executionof innovation and brand change and these must beadhered to without exception. Conform to the regulations and customerrequirements specified in both the country ofmanufacture and the intended markets of salee.g. regulatory category definitions, labelling orcoding requirements.Component qualityDiageo brands should use the highest qualitycomponents available whilst taking into accountcategory norms and consumer expectations, especiallywith reference to the anticipated selling price. Be coded in such a way as to be fully traceable tothe first customer Diageo sells to.Packaging components should be safe and must betested to ensure: Product coding and recording systems must meetDiageo Global Quality Standards. Be produced in a manufacturing unit that hasan internationally recognised (GFSI) food safetysystem such as FSSC 22000. Compatibility with liquid content. Functional performance. Suitability for the product’s journey throughthe supply chain (e.g. assembly, transit,storage and use).Human Rights4

Core principles of the policy (cont)Manufacturing and distribution qualityMarkets, customers and consumersAll our manufacturing and distribution operationsmust operate to the following standards:A regular formalised dialogue should occurbetween major markets and customers to ascertaintheir quality needs and level of satisfaction. The product and process specifications of allStrategic Brands (their Technical Equity) must befully documented in a Brand Technical Manual. All raw materials, processing aids and packagingcomponents must be properly specified andcontrolled and be sourced from reputable andapproved suppliers. All manufacturing equipment that comes in contactwith raw materials and product must be specifiedor treated in such a manner as to make it safe andcompatible with the contacted material. All Diageo manufacturing sites must comply withthe quality requirements set out in Diageo’s GlobalStandards and have in place a Quality System(equivalent to ISO 9001) that specifies quality plansand responsibilities. All manufacturing facilities must identify andspecify critical quality parameters and controls.All reasonable steps must be taken to complywith specifications. Quality results must be recorded and trackedover time and have continuous improvementactivity in place if specifications are not beingreliably achieved. All Diageo packaging facilities must utilise andconform to the Global Finished Product Standardand have an annual plan to improve performance. The analysis and sensory evaluation of all Diageobrands shall be effectively managed, demonstratingthat all specifications for finished product are met. All measuring equipment must be calibrated andanalytical methodologies shall be demonstrable. Products found to be outside of specification shouldnot be released and must be quarantined. Releaseor not will be decided after the completion of adocumented and properly authorised concessionprocess. All re work or finishing in market must be authorisedand in compliance to Diageo Quality standards. All brands must be packaged and protected insuch a manner so as to ensure they can withstandall reasonable transit and storage conditionsand arrive with our customers and consumersin a perfect condition. Improvement programmes should be in place toimprove customer satisfaction in relation to quality. Diageo and contracted third party logistics providersshould store Diageo brands in conditions that donot adversely affect the quality of the product, whilstprotecting it from physical damage and soiling. Theproduct should be stored in cool, dry conditions andbe protected from direct sunlight. Systems and processes should be in place to assessthe quality of our brands at the point of sale. Forexample on shelf in a retail outlet or in a bar or ontrade setting. All business areas shall operate a processfor capturing, investigating and respondingappropriately to customer and consumercomplaints. There shall be clearly identifiedroot cause analysis, followed by corrective andpreventive actions. Data shall be recorded andrecords kept. Complaints data shall be reportedand reviewed at market level and reported globallyvia Enablon each month. Annual improvementtargets shall be set.Crisis managementAll sites, regions and businesses shall operate acrisis management process that is demonstrablyeffective and includes, as a minimum, full productrecall processes and facilities. All quality crisesand Quality Incidents should follow the FACTSprocess and be documented accordingly. We should comply with all product and qualitylegislation relevant to our markets. We should understand and follow all the QualityStandards and quality management processesthat apply to our work. We must ensure that our partners in the supplychain are informed of and meet the relevant ourquality standards. We should be vigilant about quality to ensurethat our brands and associated products areconsistently safe for our consumers.

How to report a breachWhere to get more informationAny breach of this Policy is also considered tobe a breach of the Diageo Code of BusinessConduct and should be reported promptly.For further information and advice on Quality,please contact the Quality lead in your market,Technical centre or central Quality team, orspeak to the Global Business Integrity team.Diageo internal lawyerYou can report acompliance concern orany actual breach toyour line manager orLocal business integrity,local HR or globalbusiness integritySpeak upBreaches of this Policy will be dealt with under theBreach Management Global Standard, the DiageoInvestigation Guidelines and local disciplinary policies.Policy governanceSpecific accountability for this policy lies with thePresident of Global Supply and Global Procurementand with the Global Marketing Director as thenominated Executive sponsors of the Diageo QualityGlobal Policy. The primary accountability for deploymentof the policy lies with Global Brand Directors (for design)and with Supply Chain Directors (for manufacturedand delivered quality).Those responsible for management of designers,suppliers and customers are also accountable for thedeployment of relevant aspects of the Diageo QualityGlobal Policy by our business partners.Every Diageo employee is expected to behave and actin a manner that is consistent with the achievement ofour quality goals and is compliant with this policy.Responsibility for the maintenance of the QualitySystems and frameworks (e.g. Brand TechnicalManuals, and compliance to Global Risk ManagementStandards) lies with the Technical Directors.Human Rights6

Key things to rememberBrand quality is the most critical dimension of our brand reputationThe appearance and taste of our products should meetor exceed our consumers’ expectationsAll our brands must be safe to use and consumeQuality should be designed in to our brands from the startQuality should be managed and monitored at every stagein the sourcing, production, distribution and sales processQuality should bedesigned in to our brandsfrom the startHuman Rights7

Q and AQWe have been trying to develop a new range ofsustainable packaging for one of our brands and eventhough it’s meeting all our sustainability objectives, wejust can’t get it to look as good as the current packaging.Saving the planet is more important, though, isn’t it?AQAlthough we are committed to reducing our impacton the environment, we need to make sure thatcommitment does not impact on the quality ofany element of our products. If you are not quitehappy yet with the quality of the new packaging,it is better to continue until you are confident, orto see whether there is another way to improvesustainability without having any impact on quality.We recently received a complaint from a customer that thecase information on the Bill of Materials has been printedincorrectly. What do we do about this?AWhen you receive any complaint from a customeror consumer, you should apply your local rootcause analysis process to ensure you understandwhat has gone wrong and why, so that you cantake steps to ensure that the problem doesn’t recur.Make sure you keep records of the complaintreceived and the steps you took to manage it.We pull together all the complaints data annually,so that we can recognise any trends or commonfactors and we can apply the lessons learnedacross the whole company.Human Rights8

Brand quality is the most critical dimension of our brand reputation The appearance and taste of our products should meet or exceed our consumers' expectations All our brands must be safe to use and consume Quality should be designed in to our brands from the start Quality should be managed and monitored at every stage in the sourcing, production, distribution and sales process