Asia’s thirst for Diageo whisky offsets European sales dip

DRINKS giant Diageo yesterday served up double-digit sales growth in emerging markets during the first quarter of the year, with its business in Asia driven by a continuing thirst for premium whisky.

DRINKS giant Diageo yesterday served up double-digit sales growth in emerging markets during the first quarter of the year, with its business in Asia driven by a continuing thirst for premium whisky.

Scotland’s largest Scotch distiller said the emerging market surge and a recovery in North America helped offset economic woes in Spain and Greece which are hampering sales.

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Chief executive Paul Walsh said: “Our year-to-date performance continues to demonstrate that Diageo is well positioned with our balance of businesses across categories and with a large and increasing presence in the faster growing emerging markets. We remain confident that the investments we have made and the changes we have implemented to our operating model will continue to drive improving performance.”

Diageo – whose whiskies include Bell’s, J&B and Johnnie Walker – said the value of overall sales rose by 6 per cent in the three months to the end of March, its financial third quarter.

The fastest-growing region during the nine-month period was Latin American and the Caribbean, with sales up 18 per cent. This was followed by Africa, up 12 per cent, and Asia-Pacific, up 10 per cent.

Walsh said: “Our premiumisation strategy in Scotch in the emerging Asian markets continues to deliver double-digit growth and therefore, while in Australia and north Asia consumer trends are weaker, the year-to-date performance is in line with the first half.”

The firm – which has 28 malt distilleries in Scotland and employs more than 4,000 people north of the Border – has been overhauling operations to focus on fast-rising markets in Asia, Africa and South America.