Drinks giant sees net sales drop 5% in six months

THE continuing contraction of the pub trade sector of the Irish drinks market led to an 8% year-on-year decline in net sales — and an 8.6% volume decline — for Guinness here in the last six months of 2010.

A breakdown of international drinks giant, Diageo’s first-half results (for the six months to the end of December) show total volume for the group — in Ireland — was down slightly on a year-on-year basis, with net sales taking a 5% hit.

The group put this down to Ireland’s continued under-performing economy and a further move from the on-trade to the off-trade, in terms of consumer spend. Diageo still maintained its 51.1% share of the long alcoholic drinks market here and increased its share of the spirits market — across the island of Ireland — chiefly on the back of strong performances from the Captain Morgan rum and Smirnoff vodka brands. This performance, management said, was against a declining market and “very tough market conditions”.