Exclusive news and research on the wine, spirits and beer business

Diageo Eyes Accelerating Growth Ahead

November 16, 2021

On the occasion of its biennial capital markets day in London, Diageo has laid out an ambitious set of markers for its performance moving forward, as it aims to significantly increase its share of the total beverage alcohol market in the coming years.

Firstly, Diageo said it’s expecting organic net sales growth of at least 16% in its fiscal first half ending in December, with organic operating profit growth advancing at an even faster rate. Secondly, the drinks giant unveiled new medium-term guidance in which it’s expecting organic net sales growth in a range of 5% to 7% and organic operating profit growth in a range of 6% to 9% for fiscal years 2023 (beginning next July) to fiscal 2025. Finally, the company says it’s targeting a 50% increase in total beverage alcohol (TBA) market value share, from 4% in 2020 to 6% by 2030.

“We believe our sales growth trajectory has accelerated, underpinned by the strength of our advantaged position across geographies, categories and price tiers,” said Diageo CEO Ivan Menezes. “TBA is a large, growing and attractive sector of which Diageo currently has a 4% value share. With continued investment in marketing, digital capabilities and our people, we have significant headroom for growth. This gives us the confidence that we can grow Diageo’s value share of TBA from 4% in 2020, to 6% by 2030.”—Daniel Marsteller

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.

Tagged : ,

GET YOUR FIRST LOOK AT 2021 DATA AND 2022 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2022 IMPACT DATABANK REPORTS. CLICK HERE.

Previous :  Next :