Double-digit growth for?major spirits players

14 May, 2010

The world’s two biggest spirits producers have reported a dramatic upturn in sales.

Sales of Diageo brands grew by 12% in the first quarter of 2010 compared with the same period a year earlier.

Pernod Ricard reported sales of its brands were up 14% in the first three months of 2010, with 16% organic growth and a 2% positive impact from exchange rate fluctuations.

The surge in post-recession sales helped Diageo – the Smirnoff and Johnnie Walker producer – to a 2% rise in sales?in the first nine months of its current financial year, to the end of March.

Chief executive Paul Walsh said: “We have seen some signs of recovery, albeit fragile in the mature markets but stronger in the emerging markets. Consumer trends remain difficult to predict – especially in the mature markets.”?The company is predicting single-digit organic operating profit growth for the full year, driven by increased marketing investment behind its brands.

Pernod Ricard said Martell and Jameson had been leading its global brand growth, although the UK market was still slow. Sales in western Europe were 12% down on the previous year.

Chief executive officer Pierre Pringuet said the company would “step up advertising and promotion expenditure on strategic brands and markets”.




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