Acquisition

Diageo PLC
6 December 2000



          Diageo acquires Bundaberg Rum from Bundaberg Sugar Group Ltd

Diageo PLC today announces the acquisition of Bundaberg Rum, following an
agreement by United Distillers & Vintners Australia, which is part of its
beverage alcohol business Guinness UDV, to purchase 50% of the Bundaberg Rum
brand and business from Bundaberg Sugar Group Ltd.  UDV Australia already owns
50% of Bundaberg Rum and has acted as the marketing, sales and distribution
agent for the brand since 1991.
The purchase price, which is not material to Diageo plc, is not disclosed.


For further information:

Investor Enquiries UK     Nicole Lovett          Tel:  [phone]
Media Enquiries UK        Isabelle Thomas        Tel:  [phone]
Australia                 John Halmarick         Tel: [phone]


Note to Editors:

Diageo is one of the world's leading consumer goods companies.  Formed in
December 1997 through the merger of Grand Metropolitan and Guinness, Diageo has
an outstanding portfolio of world famous food and drinks brands including
Smirnoff, Johnnie Walker, Guinness, J&B, Tanqueray and Burger King.  Diageo
employs some 72,000 people across more than 200 markets worldwide.  In July
2000, Diageo announced that its strategy will focus on growing its beverage
alcohol business.  Diageo has agreed to combine its Pillsbury food business with
General Mills and will work towards a partial flotation of Burger King.  For
more information about Diageo and its brands, please go to www.diageo.com