'A MIXED YEAR AND A TOUGHER ONE THAN WE ANTICIPATED AT THE START': CFO DEIRDRE MAHLAN
WESTERN EUROPE: ‘Remains challenging but has stabilized’
By Ben BOUCKLEY
- Last updated on
“Although Western Europe remains challenging, performance was much stronger this year. The economies have improved but share gains, for example on Smirnoff in Great Britain, Tanqueray in Spain and Captain Morgan in both Great Britain and Germany have also contributed to the improvement in performance,” Ivan Menezes said.
Reserve brands now account for 10% of Diageo’s business in Western Europe, and net sales grew 15% this year driven by malt whiskies, Ciroc, Zacapa and Johnnie Walker.
Innovation successes included Baileys Chocolat Luxe (released last October) and Smirnoff Gold (with edible 23-carat gold leaf, launched in mid-August) he said, as well as pouches and pre-mix drinks.
Menezes then devoted some time to talking about his firm’s efforts to increase the pace of its route to the consumer – a larger sales force is calling on more outlets, getting bigger orders from each call.
“The performance in Western Europe, given the challenges in the macro environment there, is one the team can be proud of,” Menezes said.