Guinness volumes dip for Diageo
Drinks giant Diageo has seen sales of Guinness decline in the UK and Ireland.
Reporting full-year results for the year to June 30, Diageo said Guinness volume fell by 3 per cent in the UK, with a 5 per cent decline in on trade volumes balanced by 2 per cent volume growth in the off trade.
The iconic stout brand's overall share of UK beer sales fell by 0.1 per cent.
On its home territory, Guinness volumes in Ireland declined by 6 per cent, although controversial price increases in the Republic helped to offset this, with net sales down by 3 per cent.
The fall in popularity of PPS brands also caused problems for Diageo. UK sales of the Smirnoff range of ready-to-drink brands, led by Smirnoff Ice, fell 13 per cent across the year.
There were better performances from Diageo's core spirits brands, with particularly strong performances from Smirnoff Red and Gordon's Gin helping to drive the group's share of the UK spirits market up from 23.6 per cent to 24.8 per cent across the year.
Wine brand Blossom Hill grew UK volumes by 37 per cent, with Diageo's volume share of the branded wine market now 13.7 per cent compared to 11.4 per cent last year.
Overall, Diageo's pretax profits fell 2.4 per cent to £2.07 billion, in line with analysts' forecasts. Sales fell 4.2 per cent to £8.89 billion, hit by the strength of the pound against the dollar.
Chief executive Paul Walsh said: "Europe remains our key business challenge and North America continues to provide our biggest opportunity. We will continue to invest in our brands and markets to capture the highest value growth opportunities."
