Diageo is hit as British rein in their drinking

 
10 April 2012

For a while it seemed that Britons were determined to drink their way through the economic crisis.

Today's half-year results from booze giant Diageo suggest a degree of temperance is taking hold as even thirsty Brits look to cut spending.

In the half year to December, sales in the UK were falling behind its continental neighbours, although Britons are still lapping up vodka and Baileys. Smirnoff and cream-based liqueur Baileys remained popular but overall sales declined in the UK and were flat in Europe, supported by double-digit growth in France and Germany.

Diageo, which saw a 12% rise in pre-tax profits to £1.8 billion in the period, said UK sales were hit by a decision to hold firm on prices and cut the number of promotions.

Deirdre Mahlan, finance director, said: "We have reduced promotional activity in Britain to support brand equity. This has led to a cut in volumes and net sales."

Sales in North America are up 5%. One product selling well there is Guinness Black Lager, recently launched and not yet available here.

Sales of the (fizzy) black stuff are up 9%.
The interim dividend rises 1.1p to 16.6p.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Sign up you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy notice .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in