Did Distill Ventures from Diageo appeared to favor founders who fit a specific, homogeneous profile instead of focusing in great brands and businesses models?

In March 2025, Diageo, the global spirits conglomerate, announced its decision to cease onboarding new brands into its Distill Ventures accelerator program, marking a significant shift in its investment strategy within the spirits industry. This move has led to job reductions within Distill Ventures and signals a reevaluation of Diageo's approach to nurturing emerging brands.

Established in 2013 with Diageo's backing, Distill Ventures was designed to identify and support innovative, founder-led drinks brands, providing them with funding and expertise to scale their operations. Over the years, this partnership facilitated Diageo's acquisition of several notable brands, including Belsazar, Tipplesworth, Kikori, Seedlip, Mr Black, and Ritual Zero Proof.

A Diageo spokesperson commented on the development:

"Following more than 10 successful years partnering with Distill Ventures to nurture and scale emerging spirits brands, we have undertaken a strategic review of our approach to early-stage, venture investments. Moving forward, Diageo will not be bringing in any new brands into the Distill Ventures programme, whilst a smaller Distill Ventures team will remain in place to manage a reduced number of existing investments."

This strategic pivot aligns with Diageo's priorities outlined during the Consumer Analyst Group of New York (CAGNY) Conference. The company emphasized four key objectives: driving balanced sustainable top-line growth, delivering better operating leverage, maximizing free cash flow, and optimizing returns by focusing on controllable factors.

However, industry insiders asks themselves that a core issue with Distill Ventures may have been its selection criteria for brands. The program appeared to favor founders who fit a specific, homogeneous profile—essentially lookalikes of those running the accelerator—rather than prioritizing business models with real market potential. This approach may have led to investments in brands that, while personally appealing to Distill Ventures’ team, lacked scalable or sustainable business strategies. This insular strategy may have contributed to the decision to pull back, as Diageo seeks to realign its investments with a more results-driven approach.

The decision to scale back involvement with Distill Ventures reflects Diageo's intent to refine its investment focus, concentrating resources on existing ventures and core operations. While this move has resulted in job losses within Distill Ventures, a streamlined team remains to oversee and support the reduced portfolio of investments.

Distill Ventures has played a pivotal role in Diageo's strategy to engage with emerging trends and innovative brands in the spirits market. By investing over £245 million in more than 35 businesses through the program, Diageo demonstrated its commitment to fostering innovation and responding to evolving consumer preferences.

As Diageo recalibrates its investment approach, the spirits industry will be keenly observing how this strategic shift influences the company's future growth and its ability to adapt to the dynamic landscape of consumer tastes and market trends.