Marketing

Diageo Ireland exports performing well

Sales of Diageo’s Irish spirits and liqueur brands performed well in the six months to 31st December 2013 according to the Interim Statement for H1 of the conglomerate’s financial year.

 

 

This was due to the continued momentum of Baileys in Greater China where net sales grew 37% and Bushmills in Russia and Eastern Europe which indicated a net sales increase of 22%, according to David Smith, Country Director for Diageo Ireland who added, “Innovation in both brands was also an important driver of growth, with Bushmills Honey and Baileys Chocolat Luxe performing well in Western Europe. In Ireland, innovation sales grew 40%.

 

“Globally Bushmills sales were up 13%. Baileys, which increased global net sales by 1%, continued to grow in Asia Pacific while in North America growth was driven by the success of the Baileys Vanilla Cinnamon launch and the campaign ‘The most Stylish Shot of the Night’.  Baileys also performed well in Latin America and Caribbean following the roll-out of the global campaign ‘Cream with Spirit’.”

Nigeria is now the number one market for net sales of Guinness but a disappointing market here as well as that in Ireland led to a 1% decline in Guinness sales globally.

“However, the brand did deliver 4 percentage points of positive price mix from price increases,” added David Smith, “The Nigerian market was impacted by an overall beer market decline as consumers continued to be drawn to value offerings, particularly in lager, as disposable incomes were under increased pressure. There were however bright spots in other growing African markets; Guinness performed well in East Africa, growing 23%. Guinness also performed well in North America and South East Asia.

“In Ireland the overall beer market continued to decline across all channels and net sales were down 6%. Guinness net sales also declined 6% and the brand lost 0.5 percentage points of share mainly due to the warm Summer. Guinness does however hold a market share of 32.04% equating to one in every three pints consumed in a pub being a pint of Guinness.

“Competitive share of voice behind Arthur’s Day, Arthur Guinness Projects and the launch of the breakthrough new Guinness App have contributed to improved brand strength scores and in particular brand dynamism,” he said.

While excise duty was blamed for contributing to 16% net sales decline of Diageo’s spirits portfolio, Diageo managed to grow its volume share by 1.6 percentage points with increased share of Smirnoff Vodka and Gordon’s Gin, up by 2.9% and 1.9% respectively, he added.

“Long-term sustainability, exports and innovation have been key focus areas for Diageo Ireland over the past six months,” concluded David Smith, “Innovation in Baileys and Bushmills were strong drivers for growth for both brands. Strength of brands such as Guinness globally with exports of 70% remains positive for the Irish economy and the Irish export market.”

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