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Diageo’s Full-Year Sales Jump 16% To $17.7 Billion

July 29, 2021

Diageo this morning posted sales up 16% on an organic basis to £12.7 billion ($17.7b) for its fiscal year ended in June, with operating profit up 17.7% to £3.7 billion ($5.2b). The company hailed a 20% organic sales increase in North America, “reflecting resilient consumer demand, spirits taking share of total beverage alcohol, and the replenishment of stock levels by distributors and retailers.”

Tequila was a major driver of U.S. growth during the fiscal year, with net sales up 87%, led by Don Julio (+69%) and Casamigos (+126%), despite supply constraints on some aged expressions. Crown Royal (+13%) also saw some supply issues, but was boosted by its Peach, Apple, and Vanilla flavored offerings. Among other key whiskies in the portfolio, Johnnie Walker rose 19% in the U.S., while Bulleit was up 10%, benefiting from “upweighted marketing investment driving strong performance in the off-trade channel.” Smirnoff (+5%), Cîroc (+27%), Ketel One (+2%), Captain Morgan (+7%), and Baileys (+31%) likewise saw U.S. gains.

Looking ahead, Diageo said it expects its momentum in North America to continue, “with market growth returning towards historical levels of mid-single digits,” and off-trade consumption slowing some but the on-trade continuing to pick up. “We will continue to invest ahead in marketing and innovation to underpin organic net sales growth,” the company noted.

“While our business has recovered strongly in fiscal 21, with net sales growth on a constant basis ahead of fiscal 19 in three of our five regions, we expect near-term volatility in some markets,” said Diageo CEO Ivan Menezes. “However, I remain optimistic about the growth prospects for our industry, with spirits continuing to gain share of total beverage alcohol globally and premiumization trends remaining strong.” Menezes also noted the company’s $100 million “Raising the Bar” on-trade recovery fund, which has now reached about 35,000 outlets in 11 countries.—Daniel Marsteller

Diageo―Key Brands in the U.S.
(millions of 9-liter case depletions)
Brand1 Origin/Type 2019 2020 Percent
Change3
Smirnoff Domestic Vodka 8.80 9.02 2.5%
Crown Royal Canadian Whisky 6.95 7.30 5.0%
Captain Morgan Virgin Islands Rum 5.50 5.58 1.5%
Ketel One Imported Vodka 2.40 2.52 5.0%
Johnnie Walker Scotch Whisky 1.85 1.86 0.5%
Bulleit Bourbon/Rye 1.43 1.55 8.0%
Baileys Imported Liqueur 1.50 1.51 1.0%
Tanqueray Imported Gin 1.38 1.44 4.0%
Cîroc Imported Vodka 1.38 1.35 -2.2%
Don Julio Tequila 0.92 1.15 24.5%
Total Key Brands2 32.1 33.2 3.6%
1 Includes flavors.
2 Addition of columns may not agree due to rounding.
3 Based on unrounded data.
Source: IMPACT DATABANK © 2021
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