European sales slow in third quarter at Diageo
European sales fell slightly in the past quarter at Diageo, as the maker of Smirnoff vodka and Guinness (pictured) again relied on emerging markets to drive growth.
Sales for the past three months were up 6% on an organic basis, with double-digit growth in Africa, Latin American and the Asia-Pacific offsetting a 1% dip in Europe.
Total sales for the three months to 31 March were up 11% on last year, buoyed by the recent acquisitions of Mey Icki, Serengeti Breweries and Meta Abo Breweries.
“Diageo is well positioned with our balance of businesses across categories and with a large and increasing presence in the faster growing emerging markets,” said chief executive Paul Walsh.
“The performance of our premium and super premium brands continues to drive growth in North America,” said chief executive Paul Walsh.
“Despite strong performance in markets such as Germany, we remain cautious for the outlook in Western Europe.”