Blockbuster brands Smirnoff and Johnnie Walker helped the world's largest alcoholic drinks firm, Diageo, to a 6% sales rise over 2005, but trading in Europe remains tough, mainly because of Spain's shrinking Scotch whisky market and Russia's stamp duty fiasco. Spain, incidentally, is among the world's top Scotch whisky markets.
Diageo's performance has beaten some analysts' forecasts. Operating profit was up 7% on the year before, the company said, suggesting that the group has largely contained rising input costs.
Earlier, Pernod Ricard, Diageo's biggest rival, announced a "spectacular" double-digit growth for its Chivas, Jameson, Glenlivet and Martell brands for the second half of 2005. Most of the growth for Diageo and Pernod came from North America and Asia.
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