Booming gin sales and Game of Thrones whiskies have helped Diageo boost net sales this year to £12.8 billion, with organic growth up 5.8%.
In Asia-Pacific, growth was at 9%, with strong profits in Australia fuelled by 32% growth in the overall gin sales category.
Diageo Australia MD David Smith told the Australian Financial Review the company’s investment in brand-building and new products was paying off.
“Gordon's Gin had delivered an extra $12 million in retail sales in the 12 months ended June 30, and had been growing at 25%, compared with overall growth in bottled spirits across the market of around 6%,” the AFR noted.
Globally, net sales were up 22% with Gordon’s and Tanqueray delivering double-digit growth for gin sales.
It follows IWSR's Top 100 revealing Gordon's was 2019’s fastest-growing spirits brand.
The company noted it was now bringing Tanqueray into the pre-mix market, launching two super-premium Tanqueray pre-mixed offerings in Australia - including Tanqueray & Tonic - and recently in Great Britain.
Smith said the RTD category had been growing by about 2.5% after many years of going backwards or sideways. He attributed much of the success to premiumisation of the category.
"I think the lower end of the market is battling a bit,'' he said.
Diageo Australia generated sales growth of around 5% in 2018-19, but profit growth had been at a higher level and was ''approaching 10 per cent'' according to Smith.
Share the content
