Guinness sees Irish sales rise by 2%

Sales of Guinness in Ireland rose by 2%, on an annualised basis, in the 12 months to the end of June — parent company, Diageo’s latest financial year.

Net sales of the iconic stout had shown a first increase in six years in the company’s first half. The stout’s share of the Irish on-trade/pub market stands at 34%, and just under 20% in the North. On a global basis, however, Guinness’ net sales were flat. A strong performance in the US and western Europe — showing respective annualised sales increases of 3% and 2% — was offset by declines in some key markets such as Nigeria.

Sales of Baileys in Ireland were flat and fell by 4% on a global basis; but it saw double digit growth in emerging markets in Africa and South America. In Ireland, sales of Smithwicks grew by 3% and an upturn in gin consumption helped boost sales of Gordon’s, here, by 1.7% in this country.

On a group basis, Diageo — which has seen its share price hit by criticism of its chief executive, Ivan Menezes’ performance and by regulatory probes into its distribution practices in the US — posted a 3% rise in operating profit, to £2.8bn (€4bn). Organic net sales were flat for the year, but the acquisition of Indian drinks producer, United Spirits, lifted net sales by5%.

Speaking yesterday, Mr Menezes said management has made the changes to position Diageo for further growth.

“Our 2015 performance reflects the challenges we have seen on top-line growth. However, it does not diminish my confidence in what we can achieve in 2016 and even more so beyond that,” he said.