US watchdog questions Smirnoff maker Diageo's US distribution

By REUTERS
July 24, 2015 13:12

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

British spirits maker Diageo is under scrutiny in the United States, where the US Securities and Exchange Commission (SEC) has asked for information to see whether it shipped excess inventory to US distributors, a practice known as "channel stuffing."

A spokeswoman for Diageo, the world's biggest spirits company with brands including Smirnoff vodka and Johnnie Walker whiskey, confirmed the company received an inquiry from the SEC and was responding to its questions.

It was unclear if a full-scale investigation will follow.

Channel stuffing allows a company to book sales ahead of actual orders. US drug company Bristol Myers Squibb paid $150 million in 2004 to settle SEC charges that the company booked $1.5 billion of excess revenue that way.

"Diageo has received an inquiry from the SEC regarding its distribution in the United States," the spokeswoman said. "Diageo is working to respond fully to the SEC's requests for information in this matter."

Related Content

Breaking news
August 16, 2018
'Queen of Soul' Aretha Franklin dies at age 76

By REUTERS