Guinness and Baileys owner Diageo has reported a small rise in first-half sales of its key spirits and said it expects a similar picture in the second half, despite uneven economic recovery in Europe.
Sales of Baileys in the first half were the highest ever in the US, where the liquer has overtaken Kahlua in popularity.
Wendy Darlington, the new chief executive of R&A Bailey, said: 'Baileys is now the fastest growing global priority brand for Diageo in the States, up 15% in volume and 18% in net sales.'
Diageo said Baileys achieved 9% sales volume growth and an 11% increase in net sales in the first half. In a statement, the firm said strong performance pushed the brand a further one place up the league table of global premium spirit brands worldwide to number seven.
Diageo, which also makes Smirnoff vodka and Johnnie Walker scotch, said profit before tax and exceptionals rose 2% to £1.297 billion in the six months to December 31, as a recovery in its North American markets was clouded by higher pension costs and a weak US dollar.
The firm said its profits could be adversely affected by the recent drop in the dollar if foreign exchange rates remained at current levels. Finance director Nick Rose said that the weak dollar could hit second-half profits by around £80m.
Chief Executive Paul Walsh said: 'The trends that we have seen in the first half are expected to continue despite the uneven recovery in Europe, although the current exchange rate volatility will impact reported results.'
Also this morning Diageo said it had appointed Jonathan Symonds, chief financial officer of AstraZeneca, to the its board.
* Baileys was launched in 1974. Its global sales in 1975 were 19,000 cases per annum. They are now 6.6 million cases - that is 79, 200,000 bottles per annum.
