Diageo GB says strategy paying off with preliminary results

Claire Dodd

Claire Dodd

27 July 2017

Diageo GB says its strategy to innovate to provide for consumer’s evolving tastes, and to invest in its premium portfolio, has paid off as it posted its preliminary figures for the year ended 30 June 2017.

The reserve business was in double digit growth, driven by brands such as Cîroc vodka, which is now 18% ahead of its nearest competitor. Ketel One nearly doubled volume, while Tanqueray No Ten is up 78% and showing continued momentum in the on and off trade. US whiskey brand Bulleit grew 50%.

Across the portfolio, Diageo reported that Smirnoff remains the biggest vodka in GB and grew share in a falling category. Gordon’s is up double digits in both value and volume terms.

Guinness saw another successful year with total beer volumes up 3.4%. Ireland added: 'We have grown market share and the Guinness Trademark has proved its credentials in craft, heritage and quality – with sales up 5.8%,  driven by the continued success of Hop House 13.'

For the Baileys brand, where Christmas is a key sales period, sales were boosted by the Flat White Martini serve, which was a 'major sales driver' with tens of thousands of sales in the on-trade. Smirnoff Cider performed well, while launches such as Haig Club’s Clubman met demand from 'millennial consumers [who] have no predetermined view on how to drink scotch'.

Ireland added: 'This year has seen our GB business grow market share in both the on-and off-trade. We have focused on three areas – building the performance of our core brands – like Baileys, Guinness and Gordon’s, growing our reserve business which continues to enjoy double digit growth and through our ongoing work to innovate on new and existing brands to provide UK consumers with new propositions to match their evolving tastes.'

Globally, each of the drinks giant’s regions delivered organic growth, with North America and Europe, Russia and Turkey the biggest contributors. Net sales were up 3% in the US.

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