Drinks giant, Diageo, has increased its annual sales by a fifth, with the company stating
that its growth reflects continued recovery of restaurants and bars following the
pandemic, as well as the consumers’ growing taste for premium spirits.
Diageo’s sales jumped by 21 percent to GBP 15.5bn in the year to 30 June, ahead of
analysts’ forecasts.

The company said it had benefited from growth in sales of high-end drinks; in particular
scotch and tequila, with consumers trading up to more expensive brands. The company
noted that its “premium-plus brands” contributed 57 percent of reported net sales and
drove 71 percent of organic net sales growth.

Diageo also stated that the company has strengthened its premium portfolio such as the
acquisition of 21Seeds, a rapidly growing flavoured tequila brand, and Mezcal Unión, a
premium artisanal mezcal brand.

Ivan Menezes, chief executive, highlighted consumers’ growing taste for premium
spirits. “I am particularly proud of the performance of Johnnie Walker, which delivered
double-digit growth across all regions to surpass 21 million cases globally,” Menezes
said. “This fantastic milestone exemplifies our world-class brand-building and execution
capabilities.”

Menezes added: “We believe we have an advantaged portfolio with extraordinary
brands across geographies, categories and price points. And we continue to actively
shape our portfolio to fast-growing categories through innovation and acquisitions. We
are staying close to our consumers and our digital tools and data capabilities enable us
to quickly understand trends and execute with precision. Continued smart re-investment
is being fuelled by our culture of everyday efficiency and our expertise in revenue
growth management is enabling strategic pricing actions.”