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DIAGEO INTERIM RESULTS - 29th January 2015

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DIAGEO INTERIM RESULTS29th January 2015David Smith, Country Director, Diageo Ireland, says:In Ireland Guinness net sales were up 1%, taking the brandback to growth for the first time in six years. Guinness grew 1.4% to a share of 8.9% in the off trade (Nielsen end of Nov 2014 Data) whilst returning a 32.7% (Nielsen end of Nov 2014 Data) for the on trade. Growth came from increasing focus on execution in the on trade, the successful Made of More campaign and other industry led campaigns resulted in overall flat net sales in beer.Globally Guinness net sales declined 4% driven by a weaker performance in Nigeria, Indonesia and Great Britain, due to difficult market conditions and price sensitivity. However, the brand grew in many African markets, and in Kenya the brandgrew double digit driven by an increased focus on trade visibility. In Asia, expanded distribution and marketing activities drove strong double digit growth in Korea and Greater China.  Innovation was a key driver of growth, and this half saw the launch of Guinness American Blonde Lager in the United States, The Brewers Project in Great Britain and Ireland, and Guinness Zero in Indonesia.In Ireland Baileys sales increased by 1.9% (Total Trade Nielsen end of Nov 2014 Data) but globally the brand’s net sales declined 5% as the brand entered the year with high stock levels and saw softer depletions in the United States, Greater China and Nigeria. In Western Europe, net sales declined 4% lapping successful launches in the prior period. However, in GB Baileys performed well and net sales were up 2%. Innovation of the brand in Canada and Mexico drove growth in those markets.  Brand equity scores remain strong and the launch of the latest campaign ‘Here’s to Us’ celebrating the brilliant spirit of women in Western Europe is expected to lead to improved performance.In the spirits category in Ireland Gordon’s gin gained 4.52 share points to increase market share to 37.3% (Total TradeNielsen end of Nov 2014 Data) however overall spirit sales declined by 1.24ppts.Sustainability and exports are at the core of Diageo Ireland’s operating model. Since 2007, we have improved our water efficiencies by 27% and we have reduced our absolute carbon emissions by 22%. Last year we opened one of the most environmentally efficient brewhouses in the world, the development and building of this new brewery achieved LEED Platinum and BREEAM Outstanding, both internationally recognised standards. Our St James’s Gate Brewery accounts for 35% of global beer for Diageo and brews 1 billion pints per year of which 75% is exported to over 130 markets worldwide. Great campaigns and positive public sentiment to our corporate and consumer brands have supported us in delivering our beer, lager and spirit business here in Ireland. Our St James’s Gate Brewery accounts for35% of global beer for Diageo and brews 1 billion pints per year of which 75% is exported to over 130 markets worldwide. Great campaigns and positive public sentiment to our corporate and consumer brands have supported us indelivering our beer, lager and spirit business here in Ireland.Ends.For further information:Claire Aiken, Aiken PR07831717535Claire@aikenpr.com

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