David Smith, Country Director, Diageo Ireland, says:

Irish spirits and liqueur brands performed well in the half due to the continued momentum of Baileys in Greater China (net sales up 37%) and Bushmills in Russia and Eastern Europe (net sales up 22%). Innovation in both brands was also an important driver of growth, with Bushmills Honey and Baileys Chocolat Luxe performing well in Western Europe. In Ireland, innovation sales grew 40%.

Globally Bushmills sales were up 13%. Baileys, which increased global net sales by 1%, continued to grow in Asia Pacific, while in North America growth was driven by the success of the Baileys Vanilla Cinnamon launch and the campaign ‘The most Stylish Shot of the Night’.  Baileys also performed well in Latin America and Caribbean following the rollout of the global campaign ‘Cream with Spirit’.

Globally Guinness net sales declined by 1%, driven by weakness in Nigeria, (Guinness’ number one market by net sales in the last financial year), and Ireland. However, the brand did deliver 4ppts of positive price mix from price increases. The Nigerian market was impacted by an overall beer market decline as consumers continued to be drawn to value offerings, particularly in lager, as disposable incomes were under increased pressure. There were however bright spots in other growing African markets; Guinness performed well in East Africa, growing 23%. Guinness also performed well in North America and South East Asia.

In Ireland the overall beer market continued to decline across all channels and net sales were down 6%. Guinness net sales also declined 6% and the brand lost 0.5ppts of share. Guinness does however hold a market share of 32.04% equating to one in every three pints consumed in a pub being a pint of Guinness (IOI On Trade Nielsen Data). Competitive share of voice behind Arthurs Day, Arthurs Guinness Projects and the launch of breakthrough new Guinness App have contributed to improved brand strength scores and in particular brand dynamism.

In Ireland, excise duty was increased for the second year and contributed to the 16% net sales decline of the spirits portfolio. However Diageo grew its volume share by 1.6ppts with increased share of Smirnoff Vodka and Gordon’s Gin by +2.9% and +1.9%. (IOI Total Trade Nielsen Data).

Long term sustainability, exports and innovation have been key focus areas for Diageo Ireland over the past six months. Innovation in Baileys and Bushmills were strong drivers for growth for both brands. Strength of brands such as Guinness globally with exports of 70% remains positive for the Irish economy and the Irish export market.

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