'A MIXED YEAR AND A TOUGHER ONE THAN WE ANTICIPATED AT THE START': CFO DEIRDRE MAHLAN
ASIA PACIFIC – Shui Jing Fang sales fall 79% in China
By Ben BOUCKLEY
- Last updated on
Despite strong performance in reserve (double-digit growth) in Asia-Pacific, Diageo was hit hard due to the effect of anti-extravagance measures in China and a 20% net sales fall in Southeast Asia that drove a steep sales decline – one of the stories of Diageo’s 2014 results.
Despite gaining share for scotch and growing sales in duty free, Korea, Taiwan, India and Japan, Diageo’s sales in that category fell 20% in China alone, while Southeast Asia as a whole was hit by tax increases, social unrest in Thailand and destocking in other markets.
Meanwhile Shui Jing Fang net sales fell 79%, with the super-premium baijiu brand a high-profile victim of anti-gifting legislation in China and pricing pressure from other leading brands that hit on-premise sales hard.