Cîroc, Crown Royal, Ketel One Propel Diageo NA To 5% Sales Growth In First QuarterOctober 17, 2013
Diageo’s continued strong growth in the U.S. market helped offset a marked slowdown in Asia in the company’s fiscal first quarter ended September 30. The drinks giant posted a 3% organic sales rise across its global business on a volume increase of 0.6%. Solid performances by Cîroc, Crown Royal and Ketel One led to an improved sales mix for Diageo North America, whose sales rose 5% during the period.
“The strength of our biggest business, U.S. spirits, underpinned” overall growth, said Diageo CEO Ivan Menezes, who also noted “headwinds in some emerging markets, including the impact of government policies in China,” where a directive against government entertaining led to falling sales at Diageo’s domestic white spirits subsidiary Shuijingfang. Super- and ultra-premium Scotch whisky growth in China and improved performance in India managed to offset the slide in Chinese white spirits, with Diageo’s overall Asia-Pacific sales eking out a 0.6% gain.
The Latin America and Caribbean region delivered 10.9% sales growth for Diageo in the first quarter, while Africa, Eastern Europe and Turkey combined for a 1.3% increase and Western Europe dipped 1.1%.