During the G8 summit in July, as Tony Blair beds down in the Gleneagles Hotel, owned by drinks company Diageo, is he aware that his host is accused of forcing products into the African market, undermining labour rights and lobbying for free trade? Well, yes. As we see, Diageo is the very model of a modern Neo-Liberal, New-Labour company...

Diageo PLC is a British multinational alcohol company, created in 1997 by the merger of Guinness PLC with Grand Metropolitan PLC (GrandMet). It has strong links to the Labour government through one of its directors, Lord (Clive) Hollick, an active Labour Party member who was a founding trustee of the Institute for Public Policy Research (IPPR), a 'centre-left' think-tank that has been very influential on New Labour's policies. His work at the IPPR included establishing the IPPR's Commission on Public Policy and British Business, which reported in 1997 and claims to have been 'subsequently influential in setting Labour's business policy for its first term.'

In worker relations Diageo follows the New-Labour idea of there being no conflict between the company and its staff, favouring a system of 'partnerships', that the UK Department of Trade and Industry (DTI) and the Involvement and Partnership Association (IPA) both refer to as a means of increasing ‘competitiveness’, and the ability to ‘manage change effectively’. Change being a euphemism for insecurity and instability. In July 2004, when Diageo announced it was cutting 60 jobs in Glasgow and Edinburgh, a spokesperson for the company said that they hadn’t consulted with workers over the move because they ‘operated in a non-unionised environment’. Guinness Nigeria sacked 500 workers in February 2005; unions claimed that the company's objective was to replace permanent contracts with casual ones, and that major redundancies in 1992, 1995 and 1997 had all been followed by employment of casual workers.

Diageo enjoys huge economic clout in many areas of Africa: the continent provides 10% of its annual profit and is an area of 'phenomenal growth'. Since national industries were privatised and opened up to foreign capital, the alcohol market has been more or less carved up between Guinness, Heineken and South African Breweries. The real competition for Diageo is often not rival corporations but home brewers. Across Africa, beer is traditionally brewed from millet, maize or cassava as a small scale commercial enterprise, often by women. Diageo's recent 'Corporate Citizenship Report for East Africa' features a virulent attack on unbranded alcohol, which, it claims, can pose severe 'health and social risks'. However a report by ICAP, an organisation sponsored by Diageo, reported that so-called 'illicit' brew is generally safe and of good quality, as well as providing an important boost to the household and local economy.

In Africa and across the world, breweries are frequently listed among the worst pollutants and biggest consumers of water. A report into water pollution in East Africa held Tanzania Breweries (partly owned by Diageo) largely responsible for the fact that the Msimbazi River was so polluted as to be 'practically devoid of life.' In Malaysia, however, Diageo has been sponsoring educational handbooks on integrated river mouth management, a gesture which, interestingly enough, came after the company had been fined for discharging effluent into inland water in the area.

In 1998 Diageo was involved in negotiations for the Multilateral Agreement on Investment (MAI), an attempt by multi-national companies to secure agreement from the Organisation for Economic Co-operation and Development (OECD) for increased investment rights and the opening up of 'free trade'. Although the agreement was defeated by a world-wide coalition of groups opposed to the serious social and environmental consequences it was expected to have, Diageo's hosting of the upcoming G8 summit represents another chance for the corporate lobby to get their feet under the table; this is especially easy when they own the table, hotel and sourrounding countryside.

Diageo's key brands include:

• Whiskey: Bell’s, Johnnie Walker, J&B;, Black and White, Haig, Spey Royal, White Horse, VAT 69, Buchanan’s, Dimple, Old Parr, Windsor Premier, Seagram’s 7 Crown, Seagram’s VO, Crown Royal Canadian Whiskey
• Single Malt Scoth Whiskeys: Cragganmore, Glenkinchie, Oban, Distillery Malts, Hidden Malts, CARDHU
• Vodka: Smirnoff, Ciroc, Tanqueray Sterling Vodka
• Gin: Gordon’s, Tanqueray (US market leader in imported gin), Gilbey’s Gin
• Rum: Captain Morgan (UK market leader in dark rum), Cacique, Brandenburg, Pampero, Myer’s Rum
• Brandy: Bertrams VO Brandy
• Liquers: Bailey’s, Romana Sambuca, Safari
• Schnapps:Archers, Rumple Minze, Goldschlager, Black Haus
• Tequila: Jose Cuervo, Don Julio
• Pimms
• Alcopops: Smirnoff Ice, Archer’s Aqua, Bailey's Glide, Ruski, UDL
• Beer: Guinness, Harp, Kilkenny, Tusker, Smithwicks, Red Stripe
• Wine: Sterling Vineyards, Piat d’Or, Periquita Wines, Justerini & Brooks, Casillero, Blossom Hill, José de Sousa, Baron Philippe, Barton & Guestier, Beaulieu vineyards
• Champagne: Dom Perignon
• With Moet-Hennessey: Henessey Cognac, Moet Chandon