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[grupo guitarlumber] 23/10/2007 08:53

From The TimesOctober 22, 2007

Exports soar amid Far East thirst for Scotch
Rising sales in the Far East and emerging markets worldwide have led to an unprecedented boom in the whisky industryDavid Lister, Scotland Correspondent
Soaring sales in the Far East and emerging markets worldwide have led to an unprecedented boom in the Scotch whisky industry, official figures are expected to show.

Claims of a new "golden era" for Scotch will gather pace when record exports are announced for the first half of this year by the Scotch Whisky Association (SWA), the industry body. The figures, to be announced over the next few weeks, will show that exports rose by 9 per cent to more than £1 billion for the first six months of 2007.

Total export volumes for Scotch are expected to be up 17 per cent on last year, the equivalent of an extra 71 million bottles, or £92 million in shipment value.

The figures indicate that exports of Scotch, both single malts and blended whisky, are on course for a record year, thanks largely to booming markets in Asia and the Far East.

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The most important period for the industry is typically the last two months of the year, when 40 per cent of malts and 30 per cent of blends are sold in the run-up to Christmas.

Confirmation of such a bumper first half will fuel predictions that full-year exports could be well above the £2.5 billion figure – equivalent to one billion bottles - reached in 2006.

A spokesman for the SWA said yesterday: "There is real optimism across the Scotch whisky industry in 2007, as both traditionally important and new emerging markets continue to develop and offer new opportunities."

The emergence of markets in the Far East, where whisky has become a status drink for many in the middle classes, has been most spectacular in China, where blended whisky is mixed with green tea. Exports have soared from £1 million in 2001 to £58 million last year, taking the Chinese market into Scotch's top ten by value for the first time.

The lowering of import tariffs in India this year is also expected to boost exports, while the figures will also show growth in Central and South America and North America, Scotch's largest market worth around £500 million per year.

The numbers are also expected to show a robust performance in Europe, although the popularity of whisky in Britain continues to lag behind the Continent, particularly Spain, France and Central and Eastern Europe.

A spokesman for the Pernod Ricard-owned Chivas Brothers, whose Chivas Regal 12-year-old blend boasts that it is the market leader in China, Japan, Malaysia, Hong Kong and Singapore, said that Asia continued to offer huge opportunities.

Growth in emerging markets has led to massive investment in Scotland, where the Scotch industry employs 40,000 people. In order to meet demand, new malt distilleries are being built in the Scottish mainland for the first time in 30 years.

The first spirit is expected to flow from stills at a new distillery in Girvan, Ayrshire, built by William Grant & Sons, later this year.

Meanwhile Diageo, whose brands include Johnnie Walker, J&B, Bell's and the single malts Talisker and Cardhu, this month received planning permission to build a new distillery in Speyside, the traditional heartland of whisky production in northeast Scotland. Bryan Donaghey, managing director of Diageo Scotland, said: "This is a significant investment. It underpins our commitment to Scotland and the long-term growth and sustainability of our Scotch whisky business."

The feelgood factor has spread to suppliers and traditional crafts, including the coppersmiths who make and maintain whisky stills, and the coopers who repair barrels. Farmers have benefited as the price of malting barley has more than doubled to £200 a tonne, the highest in ten years.

China's choice

Five most popular Scotch whisky brands in China:

1 Chivas Regal (owned by Pernod Ricard of France)

2 Johnnie Walker Black Label (Diageo)

3 Ballantine's (Pernod Ricard)

4 Johnnie Walker Red Label (Diageo)

5 Old Matisse (Matisse, independent ownership)

[wad collector] 17/10/2007 18:02

Oh ,look ,it's an all time closing high.I felt it justified at least a mention on the BB even if overshadowed by Scottish and Newcastle today.

[gateside] 16/10/2007 17:04

LONDON (Thomson Financial) - Diageo PLC said it is maintaining its full-year guidance for 9 pct organic operating profit growth but has noted a slowdown in organic net sales growth to 5 pct for the three months to end-September.

The producer of brands including Smirnoff vodka and Johnnie Walker Scotch whisky said that the combined impact of price increases in Venezuela and changes to route-to-market in South Korea reduced organic net sales growth by over one percentage point.

It said the anticipated full-year operating profit impact of both these changes was included in the fiscal 2008 organic operating profit growth guidance of 9 pct given at the time of the preliminary results in August 2007.

[ariane] 11/10/2007 10:37

Irish tonic
By Emiliya Mychasuk and Emiko Terazono

Published: October 11 2007 03:00 | Last updated: October 11 2007 03:00

Newly-named Diageo chairman Franz Humer , who also runs drugs group Roche, relies on an old-fashioned tonic to soothe at the end of a long day: the premium Bushmills Black Irish Whiskey.

The wry Austro-Swiss, interviewed on www.ft.com/viewfromthetop , has a taste for the drink, although it wasn't owned by Diageo when he first encountered it on a trip to its County Antrim distillery in Northern Ireland five years ago. Diageo went on to buy the brand from rival Pernod for £200m in 2005.

The Old Bushmills Distillery is the world's oldest whiskey distillery, having received a royal licence to distil in 1608, and employs 125 people.

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[gateside] 07/9/2007 07:21

Guinness good for you - official

[wad collector] 02/9/2007 20:29

Telegraph review today


Fairly neutral on it HOLD is bottom line.

[gateside] 01/9/2007 06:42

Diageo surge scotches talk of Guinness sale


SCOTCH whisky and Guinness were two of the star turns for Diageo as the drinks giant yesterday poured out a 6 per cent jump in annual profits to £2.16 billion.

Diageo, which has more than 30 per cent of the Scotch whisky market, also pleased the market by raising its target for future profit growth.

The group, whose whisky brands include Johnnie Walker, J&B and Buchanan's, said it was raising its operating profits target to 9 per cent in the current year.

This followed the group beating its 8 per cent growth target in its latest year to end-June with a 9 per cent increase.

Diageo's Scotch net sales rose 13 per cent in the year, for which the full year dividend rises 5 per cent to 32.7p.

Paul Walsh, group chief executive, said: "Scotch is undergoing somewhat of a renaissance, particularly as we gain access to emerging markets. Economically-empowered consumers in those markets aspire to the product."

Johnnie Walker was the best performer in the category, with sales up 18 per cent in the international division, and 22 per cent in the important Asia-Pacific market.

Guinness, powered by increasing international sales, particularly in Africa, saw sales lift 3 per cent.

Walsh said: "Outstanding performance of Guinness in the international division, with net sales up 15 per cent, and growth in North America, offset the decline in the tough beer markets of the UK and Ireland." Volumes in the UK and Ireland fell 5 per cent. Sales of the drink in Nigeria leapt 18 per cent, shouldering out Ireland as Guinness's second biggest market after the UK for the first time.

The company said it had seen good growth in Guinness, which represents 50 per cent of Diageo's beer business, in every single sub-Saharan market in Africa.

Walsh said Diageo had also introduced Guinness to South Korea and India in the year, and that expansion of international sales represented the future for the brand.

The group also said that the good news from Guinness proved it was right to ignore some City analyst calls to sell the brand.

Nick Rose, group finance director, said: "We feel sticking with it has been vindicated. You shouldn't be expecting us to sell."

The company, whose other brands include Smirnoff vodka, Captain Morgan rum and Baileys Irish Cream, said North America now accounted for 40 per cent of sales.

Diageo said the US debt crisis that had led to thousands of homes being repossessed had not affected sales.

Rose said: "The kind of consumers in that subprime area are not the kind that buy Johnnie Walker Black."

Diageo said Europe returned to growth with second-half sales up 4 per cent to give flat overall annual sales as Britain and Spain revived, while elsewhere growth was led by Latin America, North America, China, India, Korea and Russia. The group also reiterated that it would also return £1 billion to shareholders via a share buyback programme in the current year.

One analyst said: "In its broad spread, it is arguably the best Diageo's results since its formation ten years ago." The company, which was formed through the merger of Guinness and GrandMet, saw its shares close up 27p at 1,045p.

[waldron] 01/9/2007 05:55

Diageo "underweight," estimates reduced

Friday, August 31, 2007 12:12:24 PM ET
Lehman Brothers

LONDON, August 31 (newratings.com) - Analyst Ian Shackleton of Lehman Brothers maintains his "underweight" rating on Diageo Plc (GUI.FSE), while reducing his estimates for the company. The target price is set to 1,000p.

In a research note published this morning, the analyst mentions that the company's growth in 2008 is likely to remain restricted to high single digits on account of currency headwinds. The analyst says, however, that Diageo's growth prospects for 2009 appear bright. The EPS estimates for the current year and the next year have been reduced from 60.89p to 59.37p and from 68.24p to 66.32p, respectively.

[gateside] 31/8/2007 22:49

LOL

;-)

[wad collector] 31/8/2007 20:25

Heard Paul Walsh talking about their results - impressive precise understatement.I would add if I had spare cash but sadly spent it on beer...

[gateside] 31/8/2007 06:06

Diageo savours the growing taste for Guinness in Africa

James Rossiter: Tempus

Africans have been bombarded with a Guinness Greatness marketing campaign for imbibing the black stuff, advertising the drink as a source of strength and virility.

Strong full-year figures out yesterday from Diageo, the world's biggest drinks group and owner of the Guinness brand, suggest that the campaign is in rude health. Nigeria is now the second-largest market for the stout after the UK.

A 17 per cent rise in Guinness sales across Africa was part of a wider trend of growth in emerging markets more than compensating for any decline in sales in Britain and Ireland. Worldwide sales of Guinness rose 2 per cent for the year to June 30, the first time that the drink has enjoyed growth in five years.

The Guinness brand is also expanding in India, With beer accounting for about 10 per cent of Diageo's profits and Guinness about half of that, investors can see growth in this part of the business bubbling up into top-line profits. The board can also rest easier over its decision to resist calls from analysts over the past couple of years to sell Guinness off.

Like-for-like sales across the group, whose brands encompass Johnnie Walker, Smirnoff, Baileys and Captain Morgan rum, rose 7.3 per cent, up from guidance given at July's trading update of 6 per cent to 7 per cent growth. Organic operating profit likewise came in above previous guidance, at 8.7 per cent.

Worries about cash-strapped American home-owners cutting back on their drinks spending have yet to materialise. Nick Rose, finance director, said yesterday that the type of consumers in the sub-prime market were not the kind, anyway, to buy Johnnie Walker Black. Net sales of the Johnnie Walker brand rose 7 per cent, with volumes up and drinkers happy to pay for a price rise.

Sales of the more affordable Baileys have felt no ill-affects from the general malaise in America as volumes and net sales of the cream-based liquour each rose 20 per cent.

As in Africa, a hefty advertising paid off this time for Smirnoff, where the "Clearly Smirnoff" campaign helped it to add 0.2 per cent of market share in the United States and Canada. Growth in North America, international – including Africa – and Asia Pacific more than made up for flat like-for-like sales and contracting volumes across the board in Europe.

To give a kicker to growth, Diageo is now looking to buy Absolut, the vodka that Vin & Spirit, the Swedish drinks group, is putting up for auction. A winner for Absolut could have to fork out more than £3 billion, but with Diageo managing free cashflow of £1.365 billion last year, funding a deal should not be a problem even in more difficult times for debt markets. Diageo shares added 24p yesterday to £10.42, leaving them just 52p shy of their high for the past two years. Investing in drinks may seem a defensive move when financials are under the cosh, but Diageo has proved it still has room for fundamental growth. Buy.

[merob] 27/8/2007 09:31

..visited the Cardhu distillery on Wednesday and in the glorious sunshine, it all looked splendid and rather tickateeboo!

hick!

..unlike the broken uptrend of the share price.

gulp!

[grupo guitarlumber] 26/8/2007 05:48

Sun 26 Aug 2007

Diageo chief urged to reveal the Absolut truth about bid plans
WILLIAM LYONS
DIAGEO chief executive Paul Walsh is expected to be quizzed on his plans for a proposed bid for Absolut, the vodka brand owned by Swedish drinks group Vin & Sprit, when he delivers full-year results this week.

The world's biggest spirits company, which also has J&B whisky and Guinness in its portfolio, is likely to outline its strategy on how the group plans to grow from acquisitions.

Walsh has already confirmed his intention to enter the bidding for Absolut, the coveted vodka brand that is being chased by Pernod Ricard, Bacardi and Fortune Brands.

It is understood the auction for Absolut will see the successful bidder paying upwards of £5.5bn, as it sells almost 10 million cases worldwide and captures more than 10% of the North American vodka market.

"Diageo needs to accelerate its organic operating profit growth," said US brokerage Morgan Stanley. "Given its significant balance sheet capacity, combined with the ownership of an international distribution network and its proven integration skills, the group is well placed to make acquisitions."

There will also be strong interest in Guinness, following persistent rumours that Walsh is considering selling the brand. In June, Diageo announced it was considering a review of the brand which could result in the closure of its famous brewery at St James's Gate, on the banks of the Liffey in Dublin and moving to a new site outside the city. Volume in Europe is down 7% in the six months to the end of December.

Improved top-line growth in Europe, a strong performance in Russia and the continued strength of its Scotch whisky brands are powering the growth of the company.

Full-year figures of organic operating profits are expected to come in at around £2.11bn. Investors will also be hoping for an update on trading, given reports that this market has slowed in recent months. The weakness of the dollar is also expected to have impacted profits by about £90m in 2006-07.

At the pre-exceptional pre-tax level, analysts are forecasting profits of about £2.5bn to £2.6bn for the year to end-June 2007. This would compare with a reported figure of £1.99bn last time.

Diageo India is planning to launch a global whisky brand in the Indian market. This will be the second product, after the success of the Masterstroke brand, from the joint venture Diageo-Khaitan.

This article:

Last updated: 25-Aug-07 00:56 BST

[grupo guitarlumber] 25/8/2007 09:09

Diageo "add"

Friday, August 24, 2007 6:57:31 AM ET
Dresdner Kleinwort Wasser.

LONDON, August 24 (newratings.com) - Analyst Simon Hales of Dresdner Kleinwort maintains his "add" rating on Diageo Plc (GUI.FSE). The target price is set to 1090p.

In a research note published this morning, the analyst mentions that Diageo's share price is likely to remain firm after the company reports its FY07 results. Diageo's stock is currently underperforming the sector by 2% due to the absence of an upward revision in the guidance and the anticipation of a slowdown in the US spirits market, the analyst says.

[grupo guitarlumber] 25/8/2007 05:41

Diageo "outperform"

Friday, August 24, 2007 4:12:49 PM ET
Credit Suisse

LONDON, August 24 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Diageo Plc (GUI.FSE). The target price is set to 1,200p.

In a research note published this morning, the analysts mention that the company is likely to post its FY07 EPS and PBET at 55.1 p and £2.06 billion, respectively, and report 8.4% organic profit growth. Diageo is achieving rapid growth in Latin America, which is one of the highest-margin markets, the analysts say. The company is likely to generate continuing volume growth and margin expansion in FY08, Credit Suisse adds.

[polzeath] 08/8/2007 06:26

Discover The Major Quantitative Trends Affecting The Spirits Markets In China
DUBLIN, Ireland--(BUSINESS WIRE)--Research and Markets ( has announced the addition of "Spirits in China to 2011" to their offering.

This databook is a detailed information resource covering all the key data points on Spirits in China. It includes comprehensive value volume segmentation and market share data. The databook supplies actual data to 2006 and full forecasts to 2011.

Scope of this title:

Contains information on 8 categories: Brandy, Liqueurs, Rum, Specialty spirits, Vodka, Gin & Genever, Tequila & Mezcal and Whiskey. Provides market value, volume, expenditure and consumption data by market, segment and subsegment. Includes company and brand share data by categories.

Highlights of this title:

The market for Spirits in China increased between 2001-2006, growing at an average annual rate of 1.2%. The leading company in the market in 2006 was Diageo plc. The second-largest player was Kirin Brewery Company, Limited with Pernod Ricard in third place.

[polzeath] 07/8/2007 08:00

SCTN news not helpful for DGE:

Date: Tuesday 07 Aug 2007

LONDON (ShareCast) - Brewer Scottish & Newcastle said the achievement of this year's targets will be 'challenging' due to adverse weather conditions, which affected sales in England and France.

The group, which announced its interim results today, said the European market was undermined by severe weather conditions in June and July.

Following a fall of 17% in the month of June, the UK beer market declined by 5.2% in the first half. In France, the first half beer market was broadly flat though the key trading month of June saw a decline of 16% in the retail sector, while a brewery strike in July also impacted performance.

"Whilst we remain confident that our core businesses and brands will continue to compete strongly going forward, the aggregate effect of the factors described above will make the achievement of this year's trading targets very challenging," said the group.

Pre-tax profit for the six months to June rose 5.5% to £191m on revenue that increased 7.8% to £2,107m

The Russian beer market benefited from favourable weather while United Breweries Ltd remains market leader in India with first half share of around 45%. In the first half volume rose by 16.5%.

The group raised interim dividend by 2.5% to 7.40p

[polzeath] 31/7/2007 20:37

International demand for whisky increases

Source:Food and Drink Digital Date:31/07/2007 09:02:30 According to a report, an investment of £120 million by drinks maker Bacardi, is to be made to increase the production of its Dewar's Scotch whisky brand.

A report stated that the company is trying to 'capitalise' on emerging markets in Asia and Latin America.

Its blending, packaging and bottling operations will see new investment, which will include the building of a new warehouse.

In February Diageo said it was spending £100 million on a new distillery in Scotland.

Sales in Singapore, China and Venezuela are among those surging, prompting the industry to increase production capacity.

Analysts say that at present Scotch whisky accounts for less than 1 percent of the whisky sold in India, but the lower tax regime should allow sales to quadruple in the next five years.

[gateside] 30/7/2007 19:51

Looking forward to the finals next month on the 30th August. Should be a good set of results.

[polzeath] 30/7/2007 19:14

Plenty marketing going on:

Diageo launches biggest ever Smirnoff campaign
30 July, 2007

By Hamish Champ

Drinks group rolls out £5m ad campaign, including £1m TV commercial

Diageo GB today launches its largest ever marketing campaign for its Smirnoff vodka brand.

The £5m campaign commences today with a presence online, before a 60-second commercial is rolled out on August 17 in selected cinemas showing the third film in the 'Bourne' series starring Matt Damon – 'The Bourne Ultimatum'.

It is then launched nationwide on TV on August 20.

At the heart of the campaign is a 60-second commercial entitled 'The Sea', directed by veteran filmmaker Daniel Kleinman, whose credits include music videos, opening sequences to a number of James Bond movies including the latest, Casino Royale, and the recent Guinness ad, 'Evolution'.

The commercial, which cost £1m to make, shows the sea purifying itself by throwing litter, shipwrecks and downed planes back onto dry land – which Diageo likens as a metaphor for Smirnoff's own triple-distilled purity.

Smirnoff senior brand manager, Diageo GB, Julie Bramham said: "Historically the creative campaigns that have been used to promote Smirnoff have helped build the brand to its market leading position.

"Smirnoff is perceived by more than three-quarters of consumers to be the highest quality vodka and with 'Sea' we've found a new and innovative way to highlight the extraordinary lengths it goes through to achieve its purity.

"We're confident the campaign will assist licensees to further benefit from the Smirnoff sales opportunity."

Further activity includes an online interactive game, where users can operate a virtual cannon to fire items such as a bicycle and a caravan at a target on a beach.

To coincide with the launch of the campaign, Diageo GB is investing a further £500,000 in point-of-sale kits that highlight the purity of Smirnoff and different serve suggestions.

The kits will include a training CD that demonstrate Smirnoff serves, as well as branded ice buckets, bar runners, posters and drip mats.

[polzeath] 30/7/2007 16:07

UK: Diageo launches biggest ever Smirnoff campaign
30 July 2007 | Source: just-drinks.com editorial team

Diageo GB plans to launch an integrated marketing campaign for its Smirnoff vodka brand that aims to be the largest ever.

The company said today (30 July) that it has invested GBP5m (US$10.1m) in the campaign, called 'Sea', and will run it online with immediate effect, followed by a cinema and television push next month.

The unit aims to further increase consumer awareness of the quality and purity credentials of Smirnoff, as well as to drive growth of the vodka category.

Diageo GB Smirnoff senior manager Julie Bramham, said: "Historically the creative campaigns that have been used to promote Smirnoff have helped build the brand to its market leading position. With 'Sea', we've found a new and innovative way to highlight the extraordinary lengths it (Smirnoff) goes through to achieve its purity. We're confident the campaign will assist licensees to further benefit from the Smirnoff sales opportunity."

The UK unit is investing an additional GBP500,000 in point-of-sale, which will include a training CD that demonstrates Smirnoff serves, as well as branded ice buckets, bar runners, posters and drip mats.

[polzeath] 29/7/2007 10:36

Diageo recruits KPMG big guns in fight against Indian whisky taxes
RICHARD ORANGE IN MUMBAI AND WILLIAM LYONS

DIAGEO, the world's largest spirits business, has hired consultants from KPMG to fight the Indian government in a continuing row over its punitive tax regime.

Sources in India say a team from KPMG's Australia office will fly to India this week to begin work on a detailed case against the tax.

The appointment will be backed by a letter of complaint from the Scotch Whisky Association and Discus, the US spirits trade body.

The move comes just weeks after it emerged that states are now free to introduce their own taxes on imported spirits, despite a ruling by the World Trade Organisation and a decision by the Indian government to slash import duty. The country's largest city, Mumbai, has already imposed a 200% tax on Scotch.

The state of Maharashtra says its decision is compliant because local producers already pay a 200% tax so, theoretically, the adjustment simply brings importers into line.

But last night Amrit Jirin Singh, India chairman of Brown-Forman, which makes Jack Daniels, insisted that the state was in violation of the WTO rules.

He said: "One of the major Indian states, which has 30% to 40% of total spirits sales, is not acting in line with WTO regulations.

"It's clearly not equal treatment between domestic and imported spirits.

"International companies are taxed on the value of their product at the Indian border - a price that takes in marketing, shipping and a host of other costs. Local producers, on the other hand, are simply taxed on the raw cost of manufacturing a bottle."

Early this week the International Wine and Spirits Association of India will lodge a letter of protest against the tax with the excise department of Maharashtra, Mumbai's state government.

The Scotch Whisky Association, Discus and European and Australian producers were this weekend finalising the draft of the letter.

The Australian government is also expected to come out in overt criticism of the tax this week.

As well as the 200% spirit tax, the Maharashtra state government has levied a new 150% tax on imported wine.

This may already be having an effect.

An executive with one international spirits company said: "Mumbai is not issuing fresh permits at these new rates, which seems to indicate that the policy may be under review."

But a senior civil servant at the Maharashtra Excise Commission denied that the tax was being reconsidered.

John Wakely, an independent drinks analyst, said: "This looks set to be a war of attrition, with the SWA having to break down each state individually.

"Like the United States, the alcohol business in India is not just a federal situation.

"If anything, there is far more regulation at the local state level than there is at the federal level.

"This is the main difference between India and China.

"China has a centralised government. The positive of that is that it gets things done. If they decide to build a highway it gets built.

"That is not the situation in India."

So far, Delhi and Bangalore - India's other two largest spirits markets - have not followed Mumbai's lead, as the industry had feared.

According to the SWA, India buys more Scotch - one million cases in 2004 - than either China (700,000 cases), Russia and Poland (600,000 each) or Turkey (200,000).

A spokeswoman for Diageo declined to comment.

[polzeath] 28/7/2007 07:46

For broader global exposure, I'd recommend Diageo...