Diageo’s, Irish brands, Guinness, bushmills, baileys continue to do well.
Diageo’s Irish brands
continued to grow in its latest fiscal year, the company said, with Bushmills
leading the charge with a 12 per cent rise.
The whiskey was particularly
popular in Russia and Eastern Europe, notching up growth of 36 per cent. Sales
of Baileys were 2 per cent higher globally, Diageo said.
Although net sales of
Guinness grew by 1 per cent globally, the majority of the growth was seen in
Africa, the drink’s largest market by value. In other territories, sales of the
black stuff fell, with Western Europe showing a 3 per cent decline.
In Ireland, Diageo’s brands
faced tough markets with both the beer and spirits markets contracting. But
despite the tough trade environment, Guinness held a 33 per cent market share,
and sales of Captain Morgan and Bushmills rose by 2.3 per cent and 7.5 per cent
respectively. Baileys grew by 9 per cent.
“The trading environment may
be challenging, but Diageo remains committed to the Irish market and working
with Ireland to build a stronger economy,” Diageo’s country manager for Ireland
David Smith said.
In the UK, Smirnoff lifted
the spirits of the drinks giant in the UK after the vodka’s improved trading
performance offset weaker sales of Guinness.
Guinness sales were 3 per
cent lower in the UK in the year to June 30th, but there was encouragement from
a better final quarter on the back of greater marketing. Smirnoff sales grew 4
per cent worldwide - ahead of the wider market - while other successes in the
UK included the launch of Pimm’s Blackberry & Elderflower and the expansion
of its range of pre-mix drinks cans.
Ivan Menezes, who took over
as chief executive from Paul Walsh earlier this month, said the effectiveness
of Diageo’s marketing campaigns had helped the company extend its market
positions for a number of brands.
“This has been a key driver
of our performance in scotch, our biggest and most profitable category,
especially for Johnnie Walker which is now a 20 million case brand.”
Profits in North America
rose 9 per cent to £1.5 billion, offsetting a fall of 9 per cent to £656
million in western Europe. Asia Pacific grew 21 per cent to £414 million,
despite a second half slowdown in China as a result of an “anti-extravagance”
campaign launched by the government.
