James Wilmore

Focus - Diageo's H1 Performance by Category

By | 31 January 2013

Whisk(e)y is around a third of Diageos net sales

Whisk(e)y is around a third of Diageo's net sales

Diageo reported healthy first-half numbers earlier today. Here just-drinks takes a look at how each category is performing for the drinks giant: 


Overall Scotch sales by value were up by 10%, helped by “premium and above brands” in emerging markets. Johnnie Walker saw double-digit net sales rise, boosted by a 13% jump in marketing spend. Whisk(e)y represents around a third of Diageo's net sales, with Scotch 81% of total category growth. 


Net sales up by 7% in H1, driven by Cîroc and Ketel One - accounting for almost two-thirds of vodka growth. Smirnoff net sales were up by 4%. Vodka is 12% of group sales. 


Category net sales rose by 5% in the first half. Captain Morgan, with sales up 7%, drove this. Zacapa saw a “strong performance”, boosted by Latin America and the Caribbean. Overall, the category is 6% of Diageo's group sales. 


Net sales grew by 1%. Baileys net sales fell in Western Europe, but it "grew well" in North America, Asia Pacific and Africa. The category is 6% of group sales. 


Sales were up by 5% in H1. Half of gin sales is Gordon's, which grew 4% globally helped by double digit growth in South East Asia, Russia Eastern Europe, Turkey, Andean and Africa. This offset a decline in Western Europe. Gin is 3% of group sales. 


Group net sales edged up by 1%. Fast-growing markets saw a 5% sales rise, offset by a 3% drop in developed markets. Overall the category is 19% of net sales. 

Reserve brands 

Net sales were up 18%. In North America, the category saw "double-digit growth", hepled by Ketel One Vodka and Cîroc, Don Julio, Bulleit Bourbon and the super premium variants of Johnnie Walker. In China, reserve brands grew 59% as super premium scotch "continued to gain share". 

Premium local spirits

The company did not comment on their performace, but said: "All our acquisitions follow the same model: great local brands which are growing through premiumisation, and access to enhanced routes-to-market for our international brand portfolio." In the last two years, Diageo has bought: Shuijingfang in China, Ypióca in Brazil, Meta Abo in Ethiopia, Halico in Vietnam and Mey Içki in Turkey. It is in the process of taking a controlling stake in Indian spirits firm United Spirits.

Expert analysis

Spirits in Emerging Asia to 2015: Market Guide

Synopsis Canadean’s, "Spirits in Emerging Asia to 2015: Market Guide" provides in-depth detail on the trends and drivers of the Spirits market in Emerging Asia. The report includes quantitative information (historic and forecast market values). The report provides data, analyses and opinion to help companies in the Alcoholic Drinks industry better understand the changes in their environment, seize opportunities and formulate crucial business strategies. Summary This report is the result of Canadean’s extensive market research covering the Spirits market in Emerging Asia. The report provides a top-level overview and detailed insight into the operating environment for the Spirits market in Emerging Asia. It is an essential tool for companies active across the Alcoholic Drinks value chain and for new players that are considering entering the market. Scope • Overview of the Spirits market in Emerging Asia. • Analysis of the Spirits market and its categories (where applicable), including full year 2010 consumption value and forecasts until 2015 • Historic and forecast consumption values for Spirits for the period 2005 through to 2015 Reasons To Buy • The report provides you with important figures for the Spirits market in Emerging Asia with individual country analysis. • The report will help you to identify trends by analyzing historical industry data. • The report will help you analyze the market with detailed historic and forecast market values, segmented at category level (where applicable). • The report will help you to enhance your knowledge of the market with key figures on consumption value and segmentation by category for the historic period. • The report will help you to plan future business decisions using forecast figures for the market. Key Highlights NA

Sectors: Beer & cider, Emerging markets – BRIC, Spirits

Companies: Diageo, Johnnie Walker, Smirnoff, Captain Morgan, United Spirits

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