Alcohol market down by 2% – Diageo

The alcoholic drinks market here declined by two per cent in volume in the six months to the 31st of December 2011, according to Diageo in its Half-Year results, published recently.

Diageo Ireland maintained its value share of this decreasing market and on an all-island basis Diageo maintained share of the spirits market with key spirits brands Smirnoff, Captain Morgan and Bushmills contributing to this.

Guinness enjoys a 32 per cent share of the Irish beer market and according to David Smith, Country Director at Diageo Ireland, “The last six months has seen Diageo’s exports of Guinness, Baileys and Bushmills from Ireland growing strongly”.
Global sales of Guinness were up five per cent net although Western Europe saw a decline of two per cent. Net sales of Diageo’s beer brands overall were up seven per cent for H1.

Volume sales of Baileys were down in Western Europe by 11 per cent while net sales were down nine per cent but overall, Baileys’ net sales were flat as strong performances in all other regions offset the declines, reported the company.

Diageo’s Bushmills brand delivered double-digit volume and value growth with net sales growing in Europe, its biggest region.
The marketing spend rose 10 per cent to £896 million on an organic basis with 20 per cent growth in emerging markets and eight per cent growth in North America.

Overall, Diageo experienced three per cent volume growth for the six months and seven per cent organic net sales growth to £5.76 billion, driven by “price increases together with mix benefits”. The company reported a nine per cent growth in operating profits while net sales grew nine per cent in Europe to £1.63 billion.

“The stronger economies of Germany and France delivered double digit net sales growth,” reports Diageo, “In the weaker economies of Spain, Greece and Ireland, net sales declined.”