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Review goes on as Guinness improves

Guinness - No decision on Gate yet
Guinness - No decision on Gate yet

Drinks group Diageo has said sales of Guinness are picking up, helped by an increased marketing investment, including new advertising campaigns.

The company said global Guinness sales were up 6% and it gained market share in Britain and Ireland. Guinness sales in Ireland grew by 3% and it gained 1.3 percentage points of market share.

Diageo has been reviewing its Irish manufacturing businesses, leading to speculation that brewing could be moved from the historic St James's Gate site.

This morning, Diageo Ireland managing director Michael Ioakimides told RTE radio the company wanted to remain in Ireland. He said the review was continuing, but added that the 'passion' for the Guinness brand and the history associated with St James's Gate was being taken into account.

Meanwhile Diageo chief executive Paul Walsh told the BBC there was 'huge respect' for the authenticity and origins of Guinness, and the company would not do anything to put that at risk. But he refused to be drawn when asked if Guinness would still be brewed at St James's Gate in two years' time.

Meanwhile, Diageo reported pre-tax profits of £1.37 billion for the six months to the end of December, up just over 5% on the same period a year earlier. Net sales were up 7%, while sales by volume were up 4%.

The company also said Johnnie Walker and Baileys were the major contributors to growth in the Russian market. Baileys sales were up 6% in total, with an 11% rise in Britain.