Grand Metropolitan
Encyclopedia
Grand Metropolitan plc is a former United Kingdom
-based company operating hotel
s, holiday centres, entertainment centres, public house
s and casino
s. The company was listed on the London Stock Exchange
and was a constituent of the FTSE 100 Index
until it merged with Guinness plc
to form Diageo
in 1997.
in 1961. It changed its name to Grand Metropolitan Hotels Ltd in 1962.
It diversified into catering acquiring Bateman Catering in 1967 and then Midland Catering in 1968. It then bought Express Dairies
in 1969 and Berni Inns and Mecca in 1970.
Next came its move into brewing
in 1972 as it bought Trueman, Hanbury & Buxton
and Watney Mann including the latter's subsidiary International Distillers & Vintners (which owned the Smirnoff vodka, J&B whisky, Bailey's Irish Cream, Gilbey's gin, Piat wine and Croft sherry and port brands). It changed its name to Grand Metropolitan in 1973.
In 1980 it bought Liggett Group
, a US
tobacco
and drink
s business. In 1981 it bought Warner Holidays and Intercontinental Hotels Corporation.
In 1986 the Company sold the Liggett Group
to Bennett S. LeBow
.
It acquired Heublein wines and spirits
in 1987. Also in 1987 the Company withdrew from catering when it disposed of its catering division by way of a management buyout
so creating Compass Group
.
In 1988, having sold Intercontinental Hotels to Japan
ese based Saison Group, it expanded its core betting operations by buying William Hill
. It also entered the fast food
industry by buying the Pillsbury Company and with it the Burger King
chain in 1988. It also bought the Wimpy Bar
chain that year and merged it with Burger King. It continued to sell non-core business, including in 1990 the brewers Samuel Webster's
and in 1991 Ushers of Trowbridge
.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
-based company operating hotel
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
s, holiday centres, entertainment centres, public house
Public house
A public house, informally known as a pub, is a drinking establishment fundamental to the culture of Britain, Ireland, Australia and New Zealand. There are approximately 53,500 public houses in the United Kingdom. This number has been declining every year, so that nearly half of the smaller...
s and casino
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
s. The company was listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and was a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
until it merged with Guinness plc
Guinness
Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness at St. James's Gate, Dublin. Guinness is directly descended from the porter style that originated in London in the early 18th century and is one of the most successful beer brands worldwide, brewed in almost...
to form Diageo
Diageo
Diageo plc is a global alcoholic beverages company headquartered in London, United Kingdom. It is the world's largest producer of spirits and a major producer of beer and wine....
in 1997.
History
The business was incorporated in 1934 as a hotel business called MRMA Ltd and was first listed on the London Stock ExchangeLondon Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 1961. It changed its name to Grand Metropolitan Hotels Ltd in 1962.
It diversified into catering acquiring Bateman Catering in 1967 and then Midland Catering in 1968. It then bought Express Dairies
Express Dairies
Express Dairies is a subsidiary of Dairy Crest, specialising almost entirely in home deliveries of milk and other dairy products.-History:The company was founded by George Barham in 1864 as the Express County Milk Supply Company, named after the fact that they only used express trains to get their...
in 1969 and Berni Inns and Mecca in 1970.
Next came its move into brewing
Brewing
Brewing is the production of beer through steeping a starch source in water and then fermenting with yeast. Brewing has taken place since around the 6th millennium BCE, and archeological evidence suggests that this technique was used in ancient Egypt...
in 1972 as it bought Trueman, Hanbury & Buxton
Old Truman Brewery
The Old Truman Brewery is the former Black Eagle brewery complex located around Brick Lane in the Spitalfields area, in the London Borough of Tower Hamlets. It was established by the brewers Truman's which subsequently became Truman, Hanbury and Buxton...
and Watney Mann including the latter's subsidiary International Distillers & Vintners (which owned the Smirnoff vodka, J&B whisky, Bailey's Irish Cream, Gilbey's gin, Piat wine and Croft sherry and port brands). It changed its name to Grand Metropolitan in 1973.
In 1980 it bought Liggett Group
Liggett Group
Liggett Group , formerly known as Liggett & Myers Tobacco Company, is the fourth largest tobacco company in the United States. Its headquarters are located in Durham, North Carolina, though its manufacturing facility is 30 miles to the west in Mebane, North Carolina...
, a US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
and drink
Drink
A drink, or beverage, is a liquid which is specifically prepared for human consumption. In addition to fulfilling a basic human need, beverages form part of the culture of human society.-Water:...
s business. In 1981 it bought Warner Holidays and Intercontinental Hotels Corporation.
In 1986 the Company sold the Liggett Group
Liggett Group
Liggett Group , formerly known as Liggett & Myers Tobacco Company, is the fourth largest tobacco company in the United States. Its headquarters are located in Durham, North Carolina, though its manufacturing facility is 30 miles to the west in Mebane, North Carolina...
to Bennett S. LeBow
Bennett S. LeBow
Bennett S. LeBow is a financier and corporate raider. He is also the former Chairman of the Board and CEO of Borders Group, an international bookseller based in Ann Arbor, Michigan and Chairman of the Board of Vector Group, a holding company primarily involved in the manufacturing of cigarette...
.
It acquired Heublein wines and spirits
Heublein
Heublein Inc. was an American producer and distributor of alcoholic beverages and food throughout the 20th century...
in 1987. Also in 1987 the Company withdrew from catering when it disposed of its catering division by way of a management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
so creating Compass Group
Compass Group
Compass Group plc is a global contract foodservice and support services company headquartered near London, United Kingdom. It is the largest contract foodservice company in the world and has operations in over 50 countries...
.
In 1988, having sold Intercontinental Hotels to Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese based Saison Group, it expanded its core betting operations by buying William Hill
William Hill (bookmaker)
William Hill plc is one of the largest bookmakers in the United Kingdom. Its headquarters is in the north London suburb of Wood Green and in Leeds, West Yorkshire. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.-History:...
. It also entered the fast food
Fast food
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a...
industry by buying the Pillsbury Company and with it the Burger King
Burger King
Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States. The company began in 1953 as Insta-Burger King, a Jacksonville, Florida-based restaurant chain...
chain in 1988. It also bought the Wimpy Bar
Wimpy (brand)
Wimpy is the brand name of a chain of fast-food hamburger restaurants based in the United Kingdom.-History:The Wimpy brand was created in the 1930s. The name was inspired by the character of J. Wellington Wimpy from the Popeye cartoons created by E. C. Segar...
chain that year and merged it with Burger King. It continued to sell non-core business, including in 1990 the brewers Samuel Webster's
Samuel Webster's
Webster's , was a brewery founded in 1838 by Samuel Webster which operated at the Fountain Head Brewery in Halifax in the West Riding of Yorkshire, England until 1996. Its two most famous brands, Webster's Green Label, a light mild, and Yorkshire Bitter continue to be sold, although the cask...
and in 1991 Ushers of Trowbridge
Ushers of Trowbridge
Ushers of Trowbridge was a brewery located in Trowbridge, Wiltshire.In 1824, Thomas Usher and his wife Hannah acquired a small brewery in Back Street, Trowbridge, renaming it Usher's Wiltshire Brewery. In 1844, the couples three sons joined the partnership, allowing the parents to retire in 1869...
.
Further reading
- Reader, W.J., Grand Metropolitan: A History 1962-1987, Oxford University Press, ISBN 9780198229766