Diageo Warns Top Brands Suffering from Downturn

10 July 2002

UK-headquartered drinks giant Diageo is suffering from the global economic downturn, with growth at its top brands faltering in the first half of 2002.

Following the close of its fiscal year at the end of June, the group warned that the volume growth of its top eight brands slowed in the first six months of this year from the 9% posted between July and December 2001, with its Baileys and J&B drinks reporting the most lacklustre expansion.

Although trading in its major markets of North America, Britain, Ireland and Spain was in line with expectations, Diageo said it had been hit by economic strife in Latin America.

The group also warned that sales of its new US brand Captain Morgan Gold have been slow, despite the backing of a $65 million (€65m; £42m) ad campaign.

Data sourced from: various sources; additional content by WARC staff