Diageo has Thirst for US Growth

d32ddfb1-c6ee-4820-bfc5-c40e4b581e58articleimage.jpg

25 Jan 2017 --- Diageo has reported that sales were up 4.4 percent in the six months ending December 31, helped by improvements in its business in the US. Overall, net sales came in at £6.4bn ($8.1bn) in the period, helped by a favorable exchange rate. The world’s largest distilled drinks company, which makes Johnnie Walker Scotch and Smirnoff vodka, said sales in North America grew three percent in the period.

The strongest performers were North American whisky, scotch and tequila.

North America is the largest premium drinks market in the world and accounts for around one-third of Diageo’s net sales.

In Europe, sales were up 5 percent with continental Europe the main contributor to its jump in sales.
 Johnnie Walker and Baileys performed strongly while sales of Guinness were up two percent. 

But in Russia, volumes were down by seven percent on the back of price rises.

Diageo said it remains confident it can achieve its full year goal of "consistent mid-single digit top line growth and 100 basis points of organic operating margin improvement in the three years ending 30 June 2019".

Analysts broadly welcomed the results and shares in Diageo were up 5 percent to 2.242 pence.

Related Articles

Business News

Solo Gelato and Barry Callebaut join forces to disrupt ice cream market with capsule innovation

11 Dec 2017 --- Israeli-based startup Solo Gelato has been developing a Nespresso-style capsule system that makes fresh ice cream in an instant – and Barry Callebaut has been helping to bring this goal to fruition.

Business News

Dairy UK joins call for more Brexit clarity

11 Dec 2017 --- Dairy UK has welcomed the progress being made between the UK government and the European Union on Brexit negotiations, however, the organization also wants to see much more clarity on the future relationship with the EU and how to stabilize the dairy industry.

Food Ingredients News

FGV drives palm oil sustainability awareness through supply chain

11 Dec 2017 --- Malaysian-based global agricultural and agri-commodities company, Felda Global Ventures Holdings Berhad (FGV), is on a training mission promoting good agricultural practices, improving labor conditions and boosting sustainability throughout its palm oil value chain. 

Food Ingredients News

Sensient launches new flavors collection including floral and herbal extracts

08 Dec 2017 --- Sensient Flavors has launched it's All Natural Flavor Collections. The new flavors help food and beverage manufacturers to respond successfully to upcoming market trends and reflect current consumer preferences of botanical extracts. 

Food Ingredients News

“Stressed out” cocoa trees could produce more flavorful chocolate

07 Dec 2017 --- There may be a way to make chocolate taste even better, as it has been discovered that although the agricultural method used to grow cocoa trees doesn't matter too much, the specific weather conditions do. This is according to scientists who looked at different conditions that can put a strain on cocoa trees. The report is published in the American Chemical Society’s Journal of Agricultural and Food Chemistry.

More Articles