Emerging markets boost profits at Diageo
on 11/02/11 at 5:17 pmIndustry
The world’s biggest alcoholic drinks maker Diageo, producer of Smirnoff vodka, Johnnie Walker whisky and Guinness has enjoyed a profitable six months. But the drinks maker has admitted a sharp decline in sales of Guinness in its homeland Ireland which pushed European beer sales down by 4%. However increased sales of Johnnie Walker Whisky and rapid growth in the Asia-Pacific, African and South American markets boosted the company’s earnings.
Diageo’s chief executive Paul Walsh spoke to World Business News’ Russell Padmore about why plans have been shelved for a new Guinness production plant in Ireland.
First broadcast on World Business News 10 February 2011. The full transcript is below:
Paul Walsh: I think long term Guinness has got a very bright future. We were originally going to redevelop our brewery site in Dublin, and that was because the locked land value on that site is quite high. Clearly that situation has changed, and therefore we need to revisit all of our investment ideas in that market. Now all that said, Guinness from a global perspective is performing very well.
Russell Padmore: Particularly in Africa. I noticed that you quote East Africa, Nigeria, Cameroon as strong performance areas for the company. Have you been spending much more on advertising in those nations?