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Diageo profits up
Spirits sales, as well as a more cost-efficient structure, have contributed to a 7% increase in Diageo’s operating profits for the six months to December 31, 2005
Spirits sales, as well as a more cost-efficient structure, have contributed to a 7% increase in Diageo’s operating profits for the six months to December 31, 2005.
Europe, where net sales slightly decreased, was seen as a difficult environment owing to increasing regulation and duties. The North American market continued to prove worthwhile, with consumers finding spirits more appealing. Diageo’s marketing spend was increased for the rapidly growing BRIC markets, and decreased in Europe, particularly for the declining RTD category.
Smirnoff and Johnnie Walker were the primary sources of growth, benefiting globally from significant marketing and sponsorship.
db March 2006