Britons booze through recession

Feb 12 2010 by Peter McCusker, The Journal

BRITONS are drinking their way through recession say Smirnoff-to-Guinness giant Diageo which saw strong domestic markets buck falling first-half sales across the group.

The firm’s marketing drive to celebrate the famous pint’s 250th birthday saw Guinness gain market share in Britain and Ireland in the six months to December 31. A promotional push on spirits over Christmas and Blossom Hill wine also contributed to a 6% volume rise and a 5% sales jump in Britain with “share gains delivered across spirits, beer and wine”.

This contrasted with a 2% fall in underlying sales to £5.2bn overall during the first half for the Johnnie Walker maker, although Diageo saw growth resume in the second quarter.

Sales of spirits from off-licences rose, while consumers are switching away from premium brands to cheaper lines, Diageo said.

The strong UK performance bucked much tougher trends across many struggling European markets. Alcohol sales were down 10% in Ireland – a severe casualty of the financial crisis – with pubs sales down an even steeper 14%.