About

Can you briefly explain how the legal team is structured, highlighting key individuals and their role within the department?

Aside from general counsel Central America and the Caribbean Zamira Zapata Valdés, there are two lawyers: Ivan Leon, who is the legal counsel, and Ana Leao, who is the head of compliance, controls and ethics. The third direct report is Pedro Oliva, the head of corporate security and brand protection.

The team operates and partners with the business from two offices: Miami and Panama. We have set ourselves up as strategic business partners to the Central America, Caribbean and Free Zone and Border Business. Every member of the team is key to delivering our plans and our strategy in the region, which comprises 37 countries as well as several co-packing partnerships throughout the region, while Panama is home to our innovation technology centre and principal warehousing operations. Diageo Caribbean and Central America (CCA) is a very dynamic market with many opportunities. Our geographical footprint covers 37 countries, where six different languages are spoken and we have a population of 80m. Our model is a distributor based Route to Consumer with 57 partners and approximately 115 employees. We also operate with six distributor free trade zones and with two operators in the border between Mexico and the US.

What are the most significant cases and/or transactions that your legal team has been involved with in the last two years?

The most relevant case has been the defence of Diageo Dominicana in Florida Courts in a US$65m litigation filed by United Brands (UB) with respect to the termination of a Resale Agreement in the Dominican Republic by a former re-seller.

The legal team delivered strategic defence which resulted in a successful Verdict in the UB Litigation both in the Dominican Republic and in the Florida, Miami Dade State Court protecting Diageo’s assets and reputation. We were able to preserve both financial and reputational value by minimising the monetary award from US$62m to US$2.3m. The counts and claims regarding fraud were successful in our favour opening us the door to go back and claim certain fees back to UB.

How has the legal team proceeded to simplify, and create efficiencies in the contracts process?

Well, the region has a significant amount of agreements which were executed many years and some decades ago. The team has set up the ambition of simplifying and create efficiencies, but also to help the business drive our net revenue management agenda across all the territories. With respect to other type of contracts, mainly services, materials and advertising, we have created formats to help the teams in the procurement efficiency agenda.

We have embedded, simplified and created efficiencies in contract process. We have delivered standard terms of purchase and templates for both commercial and procurement in order to implement a clear and expedite process within the organisation in connection with the elaboration and execution of all types of agreements.

Apart from legal matters, has the team worked on other company initiatives?

Yes, as a strategic team that is always looking for opportunities to create value to the business, we always look to expand our contribution to drive key projects for our businesses.

The head of compliance is a key member of the team. However, we all own the agenda and we are embedding a shift in mindset by helping every single employee in CCA to own it and always do the right thing. We believe that this agenda is the foundation for us to deliver performance, so we have worked with sponsors in the different functions to drive this agenda forward. It is always about doing the right thing, even when no one is watching. We want an impeccable culture of compliance across the region.

With respect to corporate social responsibility, we are key partners of our corporate relations team in order to help them drive and expand our different programs an initiatives. Our agenda with respect to alcohol in society is receiving more focus and investment, as we want to leave a mark in this arena.

The team is also involved in a couple of socially conscious initiatives for Diageo. These initiatives are important from a business perspective. It’s crucial to always do the right thing, and at Diageo I feel proud to say that’s something that we have incorporated into our day-to-day operations.

The drink positive initiative: Through this program, Diageo is working with governments all over the world to encourage responsible drinking and reduce drink driving. The company has started a conversation around the topics internally, too, by having employees share stories about how alcohol can play a positive role in society.

The equality initiative: Diversity in the workplace and in positions of leadership remains a concern for companies worldwide, and through this internal program. Diageo aims to increase the diversity of its team dramatically.

Have any new laws, regulations or judicial decisions greatly impacted your company’s business or your legal practice?

We are always up to date in order to assess the impact to our business of new regulation in the different jurisdictions where we operate. We have relevant synergies with the corporate relations team in order to act proactively versus reactively. The latest regulations that we are assessing are with respect to tax stamps, which can have an important impact.

Can you describe some of the challenges your team faces by working for a British multinational in Central America’s market?

Well, I wouldn’t say we have a major challenge. On the contrary, it’s a privilege to be part of a big multinational and be a trusted team for the corporate centre and the headquarters. In the legal team globally, we recognise and value diversity and work together to adapt our main policies and practices to the local arena.