Diageo built the most powerful spirits portfolio in the world and then watched it contract. The reasons why, and what the company is doing about it, contain lessons that apply directly to every founder building a premium beverage brand today.

George Clooney didn't set out to build a billion-dollar brand. He set out to make a tequila he and his friends actually wanted to drink. That distinction is exactly why Diageo paid $1 billion for it.