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Gin boom boosts Diageo’s UK performance

Published:  25 January, 2018

Diageo has reported a 7% increase in net sales in its first half year boosted by a strong performance from its gin portfolio.

With a continued focus on “priorities and brands”, the drinks giant said it had grown its market share in the booming gin category as Tanqueray provided double-digit growth, while innovation was brought to the category in the shape of Gordon’s Pink gin and Ciroc French Vanilla.

In addition, Diageo said Gordon’s had “cemented its position as Britain’s bestselling gin brand, while its beer portfolio had also shown “real strength” in the half, with Guinness delivering net sales growth of 8% driven by Guinness Draught and Hop House 13.

“We have had a strong six months in GB as we continued to focus on our priorities and brands such as Guinness, Gordon’s and Baileys; built out our reserve brands business and brought innovation to consumers,” said Charles Ireland, general manager, Diageo Great Britain, Ireland and France.

In Scotch, Johnnie Walker had contributed to GB’s double-digit growth in the category, boosted by the limited edition Johnnie Walker Black Label - released in partnership with the new Blade Runner film, which it said had been a “great success”, selling out online and reaching over six million people through social media.

“We showcased new campaigns and innovative marketing to reach more consumers. Before Christmas, Bailey’s worked with the Treat Collective on a ‘Treat Stop’ pop up in Covent Garden serving 5,000 customers in two weeks. Smirnoff also launched the latest chapter of the ‘We’re Open’ campaign, which included a partnership with the LGBT Foundation,” said Ireland.

On a global basis, sales increased 1.7% to £6.5 billion, while profit was up 6.1% to £2.2 billion.

Asia Pacific, Latin America and the Caribbean enjoyed the strongest performance, although Diageo said it had enjoyed organic growth in all of its major regions.