FDBusiness.com

Europe Remains Weak Spot For Diageo

 Breaking News
  • High Quality Content Sees Packaging Innovations London Break Records Packaging Innovations and Luxury Packaging London celebrated its 10th anniversary with standout show content. This included launching three brand-new features, advancing the sustainability debate with a focus on plastic alternatives, and welcoming more exhibitors than ever before. As a result, the show, which returned to London Olympia recently, boasted a nine percent increase in visitor numbers, with more than 4,700 [...]...
  • Nestlé Inaugurates Packaging Research Institute Nestlé has officially inaugurated the Institute of Packaging Sciences, the first-of-its-kind in the food industry. The new Institute enables Nestlé to accelerate its efforts to bring functional, safe and environmentally friendly packaging solutions to the market and to address the global challenge of plastic packaging waste. Mark Schneider, Nestlé CEO, comments: “Our vision is a world [...]...
  • Three Meals a Day – The Key to Boosting Digestive Health Markets? The traditional pattern of breakfast, lunch and dinner may hold the key to boosting digestive health markets, according to Kerry Group, the makers of the leading probiotic, GanedenBC30®. A new GanedenBC30 report notes that 85% of consumers say they are interested in buying products with digestive health benefits, but only 45% actually do.1 Additional insights report on key [...]...
  • Deliveroo, Costa Coffee and BrewDog are the UK’s Fastest Growing Brands Deliveroo, Costa Coffee and BrewDog are growing in value faster than any other UK brands, according to the 2019 BrandZ™ Top 75 Most Valuable UK Brands, announced by WPP and Kantar. Vodafone remains the UK’s most valuable brand, worth US$26.5 billion (£21.5 billion), followed by HSBC and Shell. Deliveroo, at no.50 after increasing its value 54% [...]...
  • Arla Foods Ingredients Obtains GRAS Approval For Alpha-lactalbumin in Infant Formula Arla Foods Ingredients has obtained Generally Recognized as Safe (GRAS) approval relating to its use of alpha-lactalbumin in infant formula. The US Food & Drug Administration (FDA) issued the company with a GRAS Notice known as a ‘no objection letter’. It states that it has no questions regarding the safety of fractionated whey protein concentrate [...]...

Europe Remains Weak Spot For Diageo

Europe Remains Weak Spot For Diageo
February 14
14:45 2011

Despite a 3% decline in Europe, Diageo achieved organic net sales growth of 4% to £5.32b for the six months ended December 31st 2010 and 2% organic operating profit growth (before exceptional items) to £1.73b. Diageo reported a 12% rise in operating profit to £1.72b for the period and profit before tax was £1.61b, against £1.39b in the first half of 2010.

According to Diageo, the overall economic and consumer environment in Europe continues to be weak. In Greece and Spain, the financial crisis has led to a further decline in consumer confidence and to trade destocking. In Ireland, the ongoing contraction of the on-trade has led to a decline in Diageo’s predominantly beer business. In Great Britain, net sales growth was driven by the growth of wine which reduced margins as did the very competitive pricing environment on spirits. In contrast, the consumer recovery in Russia and a bounce-back in Eastern Europe, aided by some wholesaler restocking, led to strong double digit growth in these emerging markets.

Paul Walsh, chief executive of Diageo.

Europe accounts for almost a third of group profit. The key markets of Spain, Great Britain and Ireland generate about half of the region’s sales for Diageo.

“Momentum is building in our business. Our top line performance was stronger and price/mix improved. We have increased marketing spend significantly, up 10%, but in a very focused way. 35% of the increase was behind strategic brands in US spirits to build the brand equity as we move away from promotional support and over 60% of the increase was on our brands in the faster growing emerging markets,” comments Paul Walsh, chief executive of Diageo. “Despite the economic weakness in much of Europe, our first half performance gives me increased confidence that we will improve on the organic operating profit growth we delivered in fiscal 2010.” Diageo’s organic operating profit growth was 2% in 2010.

About Author

colin

colin

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements