Global Guinness sales “broadly flat”

Global sales of Guinness remained “broadly flat” according to Diageo Ireland’s preliminary results for the year to 30th June 2017, published recently.

Guinness sales in Africa declined 5% largely driven by the shift to value beer in Kenya and Nigeria partially offset by growth in Africa Regional Markets and Europe. However Guinness in Europe grew 2% driven by expansion of distribution in Europe Partner Markets supported by media investment and the success of Hop House 13 Lager in Great Britain and Ireland.

Net global sales of Bailey’s were up 5% across all regions driven by a 6% growth in its biggest market, Europe, following an exceptional on-trade execution. Latin America and the Caribbean contributed with double-digit growth behind Mexico Mother´s Day shopper platform and North America contributed with brand innovations.

Here in Ireland, the company reports that net sales were flat.

Overall sales of Guinness-branded products (including Harp Lager, Kilkenny, Smithwicks and Hophouse 13) were up 2% “driven by continued success of Hop House 13 Lager with share gains across both channels,” reports the brewer, adding that, “Other beer brands’ net sales declined 4%”.

Hop House 13 lager continues its strong momentum since launching in February 2015 with net sales up 31% year-on-year. The equivalent of 25 million pints have now been sold across Ireland.

“During F17 we have grown consumer awareness of Hop House 13 from 47% to 59%, which in turn has driven consumer trial from 18% to 30%,” states the brewer, “This has unlocked 3.2% market share of lager in the on-trade across RoI and NI combined.

“Building upon the success of our launch campaign in April 2017 we launched the second advertising campaign for Hop House 13 in Ireland. The new €1.7m multimedia campaign showcased some of the uniquely characterful bars, pubs and even barbers where you can enjoy a Hop House 13 lager.”

Diageo Ireland’s Open Gate Brewery taps now offer new brews in over 300 outlets.

Net sales growth in spirits of 10% was driven by Gordons and Smirnoff (up 9% in Ireland) while Bailey’s performance in its home country remained strong with growth of 7%.

Export sales of Baileys totalled €487 million while its performance in its home country remained strong with growth of 7%.

Net sales at Diageo Ireland parent Diageo plc showed growth of 4.3% organically to £12.05 billion (€13.4bn) from £10.49 billion (€11.6bn) and 1.1% in organic volume which provided operating profits of £3.56 billion (€3.9bn) for the company, up from the previous year’s figure of £2.8 billion (€3.1bn).


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