7 December 2016
Updated Diageo Agreement for Thalidomide Trust Beneficiaries
Diageo has announced that following a scheduled review of its financing of the UK Thalidomide Trust it has reached a new agreement with the Trustees of the Thalidomide Trust and the Thalidomide Trust's National Advisory Council, and Diageo's financial support of the Trust will increase by £45 million. Diageo is committed to the long term support of the Thalidomide Trust and its beneficiaries and this new agreement underlines that commitment.
Under this agreement Diageo has:
• Increased its financial support to the beneficiaries of the Thalidomide Trust through a one-off payment of £27 million to help them cover capital costs associated with their changing health needs.
• Improved the financial security of the Trust fund and ensured that the Trust's funding addresses changing investment returns and interest rates.
• Reiterated its commitment to the long-term support and appropriate care of all Thalidomide Trust beneficiaries, including the eight new beneficiaries accepted by the Trust between the previous Agreement in 2012 and September 2016.
• Provided funding to employ additional staff to support the beneficiaries with their ongoing and increasing health and well-being needs.
The net of tax charge to discontinued operations in the income statement in the six months ended 31 December 2016, including the additional elements of funding above and changes to the discount rate and inflation rate applied to the existing thalidomide provision, will be approximately £60 million. Cash payments made to the UK Thalidomide Trust in the second half of F17 are expected to be approximately £40 million, including the scheduled annual payment made to the Trust by Diageo.
Dr Franz Humer, Chairman, Diageo commented:
"We have a long track record of working with, and supporting, the Thalidomide Trust in their efforts to ensure that long-term care and financial support for people injured by thalidomide is secure. This has always been important for Diageo and we remain committed to our ongoing relationship with the Thalidomide Trust."
ENDS
Enquiries:
Media relations: |
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Rebecca Perry |
+44 (0)208 978 1665 |
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Kirsty King |
+44 (0)20 8978 6855 |
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[email protected] |
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Investor relations: |
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Andrew Ryan |
+44 (0)20 8978 6504 |
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[email protected] |
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Notes to editors
- Diageo was formed in 1997 following a merger between Grand Metropolitan and Guinness.
- Guinness acquired the Distillers group of companies in 1986. More than 25 years before this acquisition, from 1958 to 1961, subsidiaries of the Distillers group distributed thalidomide.
- The Thalidomide Trust was established in 1973 as a charitable organisation which provides ongoing support to its beneficiaries.
- The Thalidomide Trust offers a range of support services including health and wellbeing advice, peer support and specialist events. The Thalidomide Trust also gathers evidence of needs and undertakes focused research on issues affecting beneficiaries.
About Diageo
Diageo is a global leader in beverage alcohol with an outstanding collection of brands including Johnnie Walker, Crown Royal, JεB, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
Diageo is a global company, and our products are sold in more than 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). For more information about Diageo, our people, our brands, and performance, visit us at www.diageo.com. Visit Diageo's global responsible drinking resource, www.DRINKiQ.com, for information, initiatives, and ways to share best practice.
About the Thalidomide Trust
The aim of the Thalidomide Trust is to provide relief and assistance for those people born damaged as a result of their mothers having taken the drug Thalidomide (formulated by Distillers Biochemicals Limited in the UK) during their pregnancy.
The Trust currently supports 465 individuals aged between 51 and 57 who, for the most part, have two or four damaged limbs. These are a most remarkable group of people many of whom have made outstanding achievements in their lives despite living with extreme levels of disability, which in some cases also include loss of hearing or sight.
