Diageo plans whiskey wars

DIAGEO is to use its €300 million acquisition of Bushmills to try and topple Jameson as the world’s top selling Irish whiskey.

Bushmills is to be marketed ‘head to head’ on Irish and international markets against the Pernod Ricard-owned Jameson.

Pernod has turned Jameson, distilled in Cork, into the fastest-selling whiskey brand in the US. It was forced to sell Bushmills.

Michael Ioakimides, managing director Guinness Ireland, said the plan was to make Bushmills, made in the oldest distillery in Ireland in Co Antrim, into a major international brand&.

Diageo’s Irish on-trade business declined by 5% and now represents 53% of the market, while the off-trade grew by 11% to 26%.

Overall Guinness has about 95% of the Irish stout market. Budweiser is number two to Heineken, and its other key long drinks such as Smithwicks and Carlsberg are well placed in the market, he said.

Smirnoff vodka performed well and continues to be the number one vodka brand in Ireland. Volume increased by 11% as a result of the successful introduction of a new bottle and new advertising campaigns.

Baileys volume was also up 2%, with most sales growth coming during the Christmas period.

Diageo, the world’s biggest alcoholic drinks group, has reported a slight fall in annual profits, but said it is set for a pickup in growth this year led by price rises and cost cutting.

In the Irish market Guinness belive the market is beginning to settle down again and that the impact of the smoking ban has run its course in terms of sales.

As to the rest of the year the group has not further plans to boost prices, but Mr Ioakimides said wages and other cost inputs in this country suggested that further price rises cannot be discounted, he warned.