Diageo lifted by spirits demand

Drinks giant Diageo today said annual sales grew by 6% after it benefited from strong demand for its Johnnie Walker and Smirnoff brands.

The group, which is the world’s biggest alcoholic drinks maker, said the improvement for the year to the end of June came despite tougher licensing regulations in its European markets.

Its priority brands, which also include Guinness, Captain Morgan rum and Jose Cuervo tequila, continued to grow strongly in the United States and are outperforming the market, it added.

London-based Diageo said its wine brands were also performing well in an increasingly competitive market.

But the overall growth of its beer bands had been hit by the weakness of the Irish beer market.