Diageo is optimistic about the future growth that can be derived from the region

Asia Pacific was newly organised as a region in February this year and is made up of India, the People’s Republic of China, South Korea, Japan and other Asian markets as well as Australia and New Zealand. It delivered 13% organic growth in net sales and 7% in operating profit. Encompassing two countries of the fast-growing BRIC economies, India and China, Diageo is optimistic about the future growth that can be derived from the region.

Investment in emerging markets
In a market that is developing rapidly and with growing consumer sophistication, the unique Smirnoff Bar 21 was introduced in Mumbai. Smirnoff Bar 21 is a fully moveable concept bar that creates a space within an existing club, offering patrons an opportunity to experience international club culture.

New standards in off trade visibility were created in India with a programme called Johnnie Walker Select. Working in partnership with customers, the programme upgrades existing retail outlets, transforming them into a world-class shopping experience, providing access to Diageo’s premium brands in one place along with interactive kiosks and brochures that introduced consumers to the business’ range of categories.

Captain Morgan, a brand known for its strength in the United States, was introduced in India, offering its unique spiced rum flavour to a new group of consumers. Shark Tooth vodka and Masterstroke whisky, both of which were new to world innovations, along with Haig whisky were also introduced. Masterstroke is the first brand to be developed with joint venture partner, Radico Khaitan, following an announcement to develop local whiskies together. Bringing Diageo’s marketing expertise to the venture, Masterstroke answered consumer demand for quality at competitive pricing.

As investment in China continued, Johnnie Walker introduced a new marketing campaign called ‘Here’s to Going Global’ featuring Chinese designers who have been successful on the world stage with the idea of encouraging a new generation of young adults to keep working to achieve their ambitions. In addition to television advertising, the programme was supported with a brand owned fashion show and concert as well as on and off trade activities. With eight months of activity, it is estimated the programme reached hundreds of thousands of consumers with a contemporary, international and dynamic programme, synonymous with the Johnnie Walker brand.

Diageo also made a minority stake investment in Sichuan Chengdu Quanxing Group Co Ltd, which enabled entry to the Chinese white spirit category with a premium brand.

The release of the latest James Bond movie, 'Casino Royale', brought excitement for fans and allowed Smirnoff to continue to establish its stylish credentials with its reappearance in the series. Through brand marketing and promotions during the film’s release, the association drove awareness and credibility for Smirnoff in over 20 cities.

Building on perfomance
In Japan, we saw growth in the premium beer segment and Guinness benefited from this, growing over the past five years. Smirnoff Ice was the number one premium ready to drink in the market and our innovations for the region were designed to help expand that growth with additional variants such as Smirnoff Ice Dry and Smirnoff Spice.

Considered to be possibly the biggest luxury market in the world, Diageo has also been seeding its Reserve brands in Japan with a focus on super premium spirits such as Cîroc, Don Julio, Bulleit, The Singleton of Glen Ord and Royal Lochnagar, which were all launched in the year with expectations of future growth.

In Korea, Windsor continued to deliver strongly with a new marketing campaign and the introduction of a non-refillable cap to ensure brand quality. The ‘Cool Drinker’ responsible drinking campaign expanded this year through successful partnership with local businesses and universities.

In Thailand, Diageo’s business outperformed the declining whisky category with net sales up in the year. Diageo led across premium, deluxe and super deluxe scotch segments and increased value share in the overall scotch category.

Diageo also opened a state-of-the-art logistics centre in Singapore. This centre allows more flexibility and responsiveness to the demands of a diverse and growing market in Asia Pacific.

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1. Relaxing after work singing karaoke, gossiping, and sipping a Baileys in Shanghai
2. Ultra premium Johnnie Walker Blue Label King George V was introduced
3. Diageo’s state-of-the-art logistics centre in Singapore allows for flexibility and responsiveness in a diverse and growing Asian market
4. Smirnoff Bar 21 visited clubs in India, a market growing in consumer sophistication
5. South Korean employees volunteered at a second-hand goods shop called Beautiful Store
6. Smirnoff made a stylish appearance in ‘Casino Royale’ with promotion support in over 20 cities
7. Johnnie Walker encouraged new fashion designers with its bespoke marketing programme