Diageo GB volume sales dip

18 February, 2011

Diageo is looking to a summer campaign for Pimm’s and a boost in sales around the royal wedding to lift its GB business after volumes fell by 1% in the second half of 2010.?Value sales were ahead by 1% over the same period, helped by what Diageo GB managing director Simon Litherland called a “robust performance” from its premium Reserve Brands portfolio.?This was especially true of Tanqueray, which grew on the back of a sponsorship deal with the Goodwood Estate in West Sussex.?Litherland said GB remained “a challenging consumer and economic environment”.?He added: “We are seeing some signs of a fragile recovery. Across the country, the industry and our consumers continue to feel the effects of the duty escalator and VAT increase on alcohol beverages.”?Diageo said its value growth came despite customer stockpiling ahead of last June’s duty hike.?Its spirits brands grew their share of the market by 0.9% in the off-trade.?Litherland added: “Diageo GB will continue to focus on building collaborative customer relationships in both the

on and off-trade as we expect the consumer environment to remain challenging.

“We will continue to invest in our brands to create sustainable and profitable growth for our customers and ourselves. We have some exciting consumer marketing campaigns coming up, including a new summer campaign for Pimm’s.”?Diageo has also launched a 10cl bottle for Smirnoff into wholesale and the convenience sector. It will have the same design as the 70cl bottle and an rrp of £2.89.?Diageo’s group volumes were up 3% in the six months to December 31, with operating profit ahead by 12% at £1.7 billion.?The company said growth was led by the emerging markets of Asia.?l Diageo’s Lagavulin malt whisky

has been named sponsor of the Islay

Jazz Festival in September for the

second year.

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