Diageo drink sales decline in UK

Drinks giant Diageo today said sales in the UK were falling behind its continental neighbours – although Britons are still lapping up vodka and Baileys.

Smirnoff and whiskey and cream-based liqueur Baileys remained popular in the six months to 31 December, but overall sales still declined in the UK and were flat in Europe, which was supported by double-digit growth in France and Germany.

Diageo, which saw a 12 per cent rise in pre-tax profits to £1.8 billion in the period, said UK sales were hit by a decision to hold firm on prices and cut the number of promotions.

Elsewhere, Latin America remained the company’s strongest market with 23 per cent sales growth, compared with 12 per cent growth in Africa, 10 per cent in Asia and 5 per cent in North America.