Guinness, tequila, vodka and RTDs have helped to drive Diageo’s sales in Great Britain.
As part of the company’s results for the year to June 30, Diageo reported a 7% rise in organic sales for the GB market. The Smirnoff owner noted that trade in its home market was “mostly driven by strong performance in Guinness with strong market share gains”. The company said that spirits net sales growth was driven by tequila, vodka and RTDs, partially offset by gin.
Europe contributed 21% of Diageo’s reported net sales in the 12-month period, with Great Britain making up the largest market.
On an overall, global basis, the company reported a 10.7% rise in reported net sales, to £17.1 billion, and a lift in reported operating profits of 5.1%, to £4.6 billion. Reported volume declined by 7.4%, indicating a continued move towards premiumisation.
Looking forward, new CEO Debra Crew said: “I expect operating environment challenges to persist, with continued cost pressure and ongoing geopolitical and macroeconomic uncertainty. This requires us to move with greater speed and agility. My near-term opportunities to drive the business focus on bolder and faster innovation, stepping up operational excellence to meet consumers’ evolving tastes and preferences while driving scotch, tequila and Guinness.”