Analysis

Focus - Diageo's H1 Performance by Category

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

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Whisk(e)y  

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. 

Vodka 

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. 

Rum 

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. 

Liqueurs

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. 

Gin 

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. 

Beer 

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.


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