Ireland: Net sales of Guinness down 3% over past year

Net sales of Guinness declined 3% in Ireland over the past year, due to hot weather, significant rises in excise duties and the continuing shrinkage of the overall beer market in the country, Irish Examiner reported on August 1.

On a global basis, net sales of the Dublin-brewed stout fell by 1%, but a strong performance was seen in eastern Africa, where price rises drove net sales growth of 19%.

While growth was also evident in Indonesia, Guinness sales declined in Nigeria, its biggest single market, due to challenging market conditions — although a pick-up was noted in the second-half of the year.

“In Ireland on-trade, Guinness accounted for 30.6% of the value and 33% of the volume in the last 12 months.

“This means that one in three pints consumed is still a pint of Guinness. Smithwicks, meanwhile, has grown its value share of the long alcoholic drink market by 0.06 points over the last 12 months,” said Diageo Ireland chief David Smith.

While Diageo failed to meet analyst expectations with its full-year earnings figures (covering the 12 months to the end of June) on July 31, it noted generally good performances for its Irish brands — with Bushmills whiskey growing global sales by 7% — Russia, Germany and eastern Europe showing the strongest momentum — and Baileys showing double-digit percentage growth.

“Irish spirits and liqueur brands continued to perform well this year, due to successful launches and growth of innovations such as Baileys Chocolat Luxe and Bushmills Honey in various markets,” Mr Smith noted.

He added that the long-term sustainability of the St James’s Gate brewery and ensuring it “continues to deliver on the perfect brewing craftsmanship that it has for the past 255 years,” are key focuses for Diageo Ireland.

“With the opening of our new €168 mln brewing investment in the coming months, we look forward to working with Government and all our stakeholders to ensure optimal conditions for long-term growth,” he said.

01 August, 2014