Newspaper article The Journal (Newcastle, England)

Guinness Casts a Dark Cloud over Diageo's Results

Newspaper article The Journal (Newcastle, England)

Guinness Casts a Dark Cloud over Diageo's Results

Article excerpt

Guinness maker Diageo said yesterday that sales volumes of the stout had fallen 7% in Europe during the second half of last year.

It put the black stuff's decline ( which accelerated from a 5% volume fall last year ( down to exceptionally warm weather in the UK and Ireland, which account for 90% of Guinness sales.

Diageo chief financial officer Nick Rose said: "You have to look at the brand in its totality. Some markets have a following wind and some markets have a headwind. Ireland is one of those markets with a headwind at the moment."

Total sales revenues from Guinness were down 4% as Diageo moved to increase prices. The performance came in a UK market where sales declined 9% due to factors including Scotland's smoking ban, introduced in March last year, and a decline in retailer-led promotions.

Mr Rose said: "We are positive about the long-term prospects for Guinness, considering the power of the brand. We have also spent more time on looking at innovation. …

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