Diageo has reported that its group of priority brands performed worse than other brands in the latest quarter as consumers turn to cheaper options.
In the second quarter the “Global Priority Brands” a stable of eight big brands including Smirnoff, Johnnie Walker, and Baileys reported a 1 per cent decline in sales while sales of other brands grew 7 per cent.
Among the priority brands, only Guinness had a good quarter, as weak consumer confidence ate into sales of premium products. CEO Paul Walsh said: “The performance of our standard priced brands has been stronger than that of our premium priced brands.”
Overall Diageo reported a 3 per cent increase in reported sales to £5.207bn for the first half of the year ending December 31. On a constant currency basis sales fell 2 per cent for the 6 month period.