The Strategist

Diageo: save whisky from Brexit


07/29/2016 - 15:04



Diageo, the world's largest producer of premium alcoholic beverages, is concentrating its efforts to protect its Scotch whiskey kitchens. This segment found itself behind the eight ball after the Brexit referendum.



Joshua Rappeneker
Joshua Rappeneker
"Due to Brexit, now our focus is really on how to keep the segment of Scotch whiskey healthy. Trade agreements in Europe and around the world. You know, Johnnie Walker had been on more than 100 markets long before Coca-Cola left coast of America ", - said the executive director of Diageo Ivan Menezes.

He noted that the company's business is built on global trade. One of its very important aspect is to keep the Scotch whiskey segment healthy and competitive:

"Our message to the Scottish and British governments is clear: to create conditions to preserve what is truly one of the business jewels in The United Kingdom of Great Britain and Northern Ireland."

Earlier, Diageo published its preliminary results for the full year. Net profit amounted to 2.24 billion pounds, while sales reached 10.49 billion pounds. Diageo, which brands include Guinness, Smirnoff, Johnnie Walker and others, reported growth of the organic results, with sales increasing by 1.3% and operating profit - by 3.5%.

The Board of Directors also recommended to increase the dividend by 5%, to 59.2 pence per share.

Menezes said he is "very pleased with the strong results". 

According to him, the company is showing good results in the US, Europe and emerging markets.

Scotch whiskey is a key component of Diageo’s business. The company operates 28 malt distilleries, accounting for nearly one-third of the total power in the industry. The leading brands are Johnnie Walker, J&B, Bells, along with a variety of brands of single malt whiskeys, such as Cardhu, Talisker, Mortlach and The Singleton.

source: cnbs.com