Diageo's reserve portfolio shows strong growth
Diageo Great Britain’s reserve brand portfolio grew 24% in the six months, driving a 1% rise in overall sales at the British arm of the world’s largest spirits supplier.
On a global level the drinks giant struggled due to a Chinese clampdown on “extravagance”, a weak beer market in Nigeria and struggling economies in parts of Asia and Latin America.
It caused Diageo’s share price to drop 4% to £18.21 – a 15-month low.
But Diageo Great Britain weathered the storm.
Cîroc and Talisker were the star performers in the reserve portfolio, while new launches Cîroc Red Berry, Smirnoff Gold and Baileys Chocolat Luxe drove growth through innovation and net sales of Pimm’s nearly trebled, boosted by a hot summer.
But Smirnoff sales were down 2% and Guinness was flat.
* Diageo has appointed Tim Homewood as new UK brand ambassador for Tanqueray and Tanqueray No. 10 gins.