The world's biggest alcoholic drinks group, Diageo, has reported pre-tax profits of £2.1 billion sterling for the year to the end of June, up from £1.9 billion the same time last year.
Sales rose by 6% to over £7.260 billion as the maker of Guinness, Baileys and Smirnoff admitted that challenges in the Irish beer market had 'adversely impacted' on growth in Europe
Diageo said its performance in Ireland reflected the continuing change in market dynamics from on to off trade. It said that while the total beverage alcohol market here grew by 2%, the pub trade was down 3% and the off- licence trade was up 7%. Off- licence trade now represents 51% of the total market.
Worldwide, Guinness sold over 11 million units last year, down 1% on the same time last year, while Baileys sales were up 4% to seven million units.
In Ireland, Guinness sales fell by 3%, while sales of Baileys were down 8% due to increased competition from lower value brands.
But sales of both Carlsberg and Harp increased by 7% and 2% respectively on the back of new advertising campaigns and packaging. Diageo said that Smirnoff continued to be the number one selling vodka in Ireland.
