Hot summer weather hit Guinness sales in Ireland 

Ireland's exceptional summer weather saw sales of Guinness decline, Drinks maker Diageo said on Thursday, despite the company posting an unexpected rise in net sales. Picture: Patrick Bolger/Bloomberg

Ireland's exceptional summer weather saw sales of Guinness decline, Drinks maker Diageo said on Thursday, despite the company posting an unexpected rise in net sales. 

Strong demand for Guinness in Ireland and the UK ahead of the football W orld Cup had seen Diageo beer sales increase in May. But posting its latest quarterly sales, Diageo reported a low-single-digit decline in Great Britain and Ireland "due to unusually hotter weather and competitive pressure".

Diageo posted net sales growth of 0.6% for the three-month quarter to September 30. Organic net sales fell 3.6% in its largest market North America, but double digit increases in North America for Guinness and Smirnoff Ice helped negate the fall.

Nevertheless, the slower-than-expected decline in North America and the overall unexpected overall sales growth is positive news for chief executive Dave Lewis, who joined Diageo in January and has begun a global cost-cutting plan.

"Whilst the market remains challenging, and volatility continues given the geopolitical uncertainty and impact of the ongoing conflict in the Middle East on energy, supply and distribution, results in the first quarter represent a small step in the right direction," said Mr Lewis, nicknamed 'Drastic Dave' after implementing substantial cost-cutting measures at previous roles at Tesco and Unilever.

"Growth in the quarter whilst implementing significant change is testament to the focus and commitment of Diageo colleagues, and I would like to register my sincere thanks for their support."

Diageo kept its organic net sales outlook broadly flat for the year.

Diageo employs more than 1,200 people in Ireland across brewing, production of liqueurs, marketing, sales, and commercial. In addition to Guinness, the drinks giant also makes Baileys, Smirnoff, Johnnie Walker and Smithwicks. In June, the company was considering cutting around 150 roles in Ireland as part of global cost-cutting.

Nevertheless, the company continues to invest in Ireland. Diageo officially opened its new €300m Littleconnell brewery at a 40‑acre site in Co Kildare, focusing on lager and ale production and freeing up stout production at the Guinness Brewery in Dublin. The new brewery will see a further €400m invested over three years.

Additional reporting by Reuters