Global sales of Guinness fall as Irish and Nigerian beer markets decline

Global sales of Guinness fell by 1% during the second half of 2013, mainly due to declining beer markets in its traditional core regions of Ireland and Nigeria.

Despite this, however, the iconic stout’s parent company, Diageo, enjoyed a near 2% annualised jump in group net sales over the six months, which mark the first half of the company’s financial year.

The London-headquartered drinks giant yesterday reported net sales of just over £5.93bn (€7.2bn) for the six months to the end of December — 1.8% up on the same period the previous year. Despite a 1% decline in sales across western Europe (albeit an improved performance), the group enjoyed a near 5% sales increase in North America and a 1.3% rise in first-half sales in emerging markets.

As well as the likes of Guinness, Baileys and Bushmills, Diageo owns such brands as Smirnoff, Johnnie Walker, Tanqueray and Captain Morgan. In terms of the Irish brands, Baileys saw a near 40% rise in first-half net sales in China, while sales of Bushmills in Russia and Eastern Europe were up by 22% year-on-year.

With regard to Diageo’s performance in Ireland, total net sales fell by 6% — year-on-year — as the overall beer market here continued to decline. Net sales of Guinness in Ireland fell by 6% also and the warm summer hit its Irish market share by 0.5 percentage points; although the brand still commands a dominant 32.04% share of the Irish market; meaning that one in every three pints sold in pubs is a Guinness.

‘Innovation’ sales — which relate to new products like Bushmills Honey and Baileys Chocolat Luxe — grew by 40% in Ireland, during the period. However, the second consecutive yearly increase in excise duty contributed to a 16% net sales decline in the group’s spirits portfolio here. That said, there were market share increases for Smirnoff and Gordon’s Gin.

“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,” Diageo Ireland country director David Smith said.