David Smith, Country Director, Diageo Ireland, says:
In Ireland Guinness sustained its positive momentum with net sales up 2%. Guinness grew 2.6% in volume in total trade, with growth to 7.5% in the off trade and returning a 34.0% (Nielsen end of May 2015 Data) volume share for the on trade in the Republic of Ireland. While in Northern Ireland Guinness maintained a 19.8% share in volume in the on trade (Nielsen end of May 2015 Data). Growth was supported by successful innovations launched through ‘The Brewers Project’.
Globally, Guinness net sales were flat, reflecting a strong performance in both the United States and Western Europe, where the brand grew 3% and 2% respectively. This was achieved through a combination of acclaimed innovations such as Blonde American Lager and Dublin Porter that built on the Guinness brewing heritage, a drive to increase presence and distribution in bars, and a series of award winning marketing campaigns built under the ‘Made of More’ platform. In Nigeria, sales declined but performance improved over the course of the year and volume share stabilised. Sales declined in Indonesia due to adverse regulatory changes.
In Ireland Baileys sales were broadly flat (Total Trade Nielsen end of Nov 2014 Data) but at 74.7% volume share of the category, it remains the number one selling cream liquor on the island of Ireland and the world. Globally Bailey’s net sales declined 4% having started the year with high inventory levels. It experienced softer depletions this year in the United States and Nigeria. In China, after weakness in the first half, specific interventions to drive consumer conversion resulted in stronger second half depletions, up mid single digit. The brand continued to expand its footprint in emerging markets, with double digit growth in Colombia, West LAC, and Africa Regional Markets.
Ireland is experiencing an increase in interest in the Gin category from consumers. Gordon’s gin grew 1.7% in volume (Nielsen end of May 2015 Data). In particular the on trade saw significant growth for Gordon’s of 7.4%. Overall net sales in spirits were down 2% in Ireland as the category continued to be affected by last year’s duty increase.
We also enjoyed a strong performance from one of our iconic Irish brand Smithwicks with growth of 3% to a volume share of 4.4% in our total trade.
Diageo Ireland continued to build momentum in sales and in reputation in our financial year of F15. The year saw the official opening of our €169 million investment of Brewhouse No 4 by Taoiseach Enda Kenny. We were officially awarded the LEED Platinum by, US Green Council CEO and Special Advisor to President Barack Obama, Rick Fedrizzi. We celebrated Bailey’s 40th birthday and the announcement of a partnership with Enterprise Ireland for our Research and Development facilities at Nangor Road. We launched some of our most successful innovations to date, Dublin Porter, West Indies and Hop House 13. We also quadrupled our Learning for Life Programme where we trained and supported over seventy participants to find employment. In Northern Ireland, we opened our new offices in Capital House and in May the first ever Guinness PRO12 final was held at Kingspan Stadium.