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Diageo’s Sales Approach $19 Billion On 21% Surge In Fiscal Year Through June

July 28, 2022

Diageo saw sales climb 21% to £15.5 billion (18.8b) in its fiscal year ended in June, with the company crediting the robust growth to “continued recovery of the on-trade, resilient consumer demand in the off-trade and market share gains, underpinned by favorable industry trends of spirits taking share of total beverage alcohol and premiumization.” Operating income jumped 26% on an organic basis to £4.4 billion ($5.3b).

“Our net sales growth was across categories,” said Diageo CEO Ivan Menezes. “We benefited from the on-trade recovery, continued global premiumization trends, with our super-premium-plus brands up 31%, and from price increases across our regions. I am particularly proud of the performance of Johnnie Walker, which delivered double-digit growth across all regions to surpass 21 million cases globally.” Johnnie Walker has the highest retail value of any spirits brand worldwide, according to Impact Databank, topping $5.2 billion last year to remain about $300 million ahead of Hennessy.

In the North America region, accounting for 39% of global sales, where company veteran Claudia Schubert will be taking the reins as president from new global COO Debra Crew on October 1, sales grew 14%, with shipments running about three percentage points ahead of depletions as distributors restocked. Tequila continues to be a major growth driver, with Don Julio up 36% and Casamigos soaring 88% for the fiscal year. Johnnie Walker, Ketel One, and Bulleit were also up double-digits, while Crown Royal grew 6%, offsetting declines in Smirnoff, Captain Morgan, and Baileys.

“While we expect net sales growth to moderate in fiscal 23, as we lap the strong on-trade recovery, we expect our advantaged portfolio to benefit from spirits continuing to take share of total beverage alcohol, premiumization and strategic pricing actions,” the company said of the outlook for the North America business.”

Globally, Diageo is aiming for net sales growth in the range of 5% to 7% over the next three years, with organic operating profit growth in the range of 6% to 9%. Longer-term, the company says it’s making progress toward its goal of delivering a 50% increase in its value share of total beverage alcohol globally to 6% by 2030.

“Looking ahead to fiscal 23, we expect the operating environment to be challenging, with ongoing volatility related to Covid-19, significant cost inflation, a potential weakening of consumer spending power and global geopolitical and macroeconomic uncertainty,” Menezes noted. “Notwithstanding these factors, I am confident in the resilience of our business and our ability to navigate these headwinds.”—Daniel Marsteller

Diageo—Key Brands In The U.S.
Brand3 Type Total 2021
Case Depletions1
2022 YTD
Percent Change
in Control States2
Smirnoff American Vodka 8.93 -5.2%
Crown Royal Canadian Whisky 8.46 1.8%
Captain Morgan Virgin Islands Rum 5.55 -0.4%
Ketel One Imported Vodka 3.02 -1.3%
Johnnie Walker Scotch Whisky 2.02 -2.0%
Don Julio Tequila 1.85 20.4%
Tanqueray Imported Gin 1.61 -3.6%
Baileys Irish Cream
Liqueur
1.55 -11.7%
Bulleit Bourbon/Rye 1.53 -3.4%
Ciroc Imported Vodka 1.50 -23.8%
Casamigos Tequila 1.43 67.7%
Total Key Brands4 37.43 -0.7%
1 Millions of 9-liter case depletions
2 Year-to-date through June
3 Includes flavors and RTDs
4 Addition of columns may not agree due to rounding
Source: NABCA and IMPACT DATABANK © 2022

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