Britain is drinking more Guinness and fewer spirits
Key Points
- Guinness grew volume and net sales by double digits in Great Britain, outperforming the wider beer category
- Diageo's Great Britain net sales rose overall, with Guinness offsetting weaker spirits
- Group spirits net sales fell 5% while beer grew 9% and ready-to-drink grew 15%
- Tequila was the worst-performing category, down 16%, with Casamigos down 25%
- Diageo's operating profit fell 27.2% after $1.50 billion of write-downs
Guinness sales grew by double digits in Great Britain last year while Diageo’s spirits sales fell, according to full-year results the drinks group published on Thursday (6 August).
Diageo said net sales in Great Britain rose over the 12 months to 30 June, driven primarily by double-digit growth in Guinness, which more than offset a softer performance from spirits.
Guinness grew both volume and net sales by double digits in the market, reinforcing its position as the fastest-growing beer and the fastest-growing non-alcoholic beer in Great Britain. Growth in pubs and bars drove a share gain, and the brand significantly outperformed the wider beer category.
The pattern repeated in Ireland, where net sales grew on continued Guinness growth, market share gains and the start of a partnership with Live Nation.
Across Europe as a whole, net sales rose 3.4% on Diageo’s underlying measure, which strips out currency movements and businesses the company has sold. Volumes were flat, beer grew by double digits and spirits declined slightly.
Guinness was the strongest performer in Diageo’s entire portfolio. Volumes rose 7% and net sales rose 12%, against a 5% fall in spirits net sales across the group.
Beer now accounts for 18% of Diageo’s reported net sales, up from a smaller share a year earlier, while spirits account for 75%.
What sold and what didn’t
Tequila recorded the sharpest fall of any major category, with net sales down 16%.
Casamigos fell 25% and Don Julio fell 14%, which Diageo attributed to a softer category, increased competition and both brands losing share. Canadian whisky fell 15% and Crown Royal fell 15%.
Scotch grew 2%, with Johnnie Walker up 2% and single malts growing, while Buchanan’s declined.
Rum grew 2%, vodka was flat and gin fell 2%. Ready-to-drink products were the fastest-growing category after beer, with net sales up 15%, helped by the launch of a Casamigos canned range for the FIFA World Cup and growth in Cutwater and Ketel One cocktails.
Group net sales fell 3.0% to $19.64 billion and operating profit fell 27.2% to $3.16 billion, after Diageo took $1.50 billion of write-downs relating largely to Türkiye and the Don Papa rum brand, alongside $0.90 billion of restructuring costs.
The company recommended a full-year dividend of 50 cents per share.
