Success in this year was again driven by Diageo's strong scotch whisky collection

International is organised into three hubs: Africa, Latin America and the Caribbean (LAC) and Global Travel and Middle East (GTME). Favourable economic environments across most of the region enhanced Diageo’s business achievements. International again delivered strongly with net sales up 18% and operating profit up 19%, both on an organic basis.

Africa
Africa accounts for nearly a third of Diageo’s net sales of beer globally and nearly half of total beer volume. While Guinness was the main brand, it is supported by local brands including Windhoek, Tusker, Pilsner, Waragi, White Cap, Bell Harp and Satzenbrau. Some of these brands are produced locally through joint ventures we have established on the continent during the past several years.

Guinness performed strongly in Africa this year. Nigeria is now the second best-selling market and the brand grew consistently throughout most of the hub. In fact, five of Guinness’ top 10 markets were in Africa.

This growth was due in part to the introduction of a new advertising and marketing campaign called ‘Guinness Greatness’. The campaign was more than just advertising, it was a philosophy that touched everyone. It was about celebrating everyday moments of inspirational behaviour – the drop of greatness in each of us. The campaign was introduced in Ghana, Cameroon, Kenya and Nigeria.

Innovation was a key driver of growth in Africa and contributed in a variety of ways this year to meet consumer demand. Whether a lager in Kenya, such as Senator or a ready to drink like Smirnoff Storm in South Africa offering an alternative to beer, Diageo’s innovations provided new options for consumers that they continued to choose.

The business in Africa also worked in partnership with governments and industry bodies, to support significant breakthroughs on excise duties in places such as Ghana, Nigeria and Kenya.

Latin America and the Caribbean
Success in Latin America this year was again driven by Diageo’s strong scotch whisky collection, led by the number one whisky brand in the world, Johnnie Walker.

Growth was the result of the successful use of a range of premium brands to achieve a broad presence across many consumer motivations and occasions. Key to driving net sales growth has been successfully trading consumers up to more premium variants, thereby driving mix improvement within Diageo’s range of scotch brands.

This delivered sustained growth in the category, adding a million cases in sales during the year. Particularly, success can be seen in the continued trend of premiumisation with the largest growth in the super premium segment. Brands like Johnnie Walker, Buchanan’s and Old Parr offered choice to customers and consumers when they placed their orders.

Johnnie Walker retained its place as the leading scotch whisky in LAC with increased marketing investment, a new advertising campaign, renewed focus in on trade execution, a solid communications platform and pioneering responsible drinking programmes built around successful sports sponsorships.

Buchanan's, which sold over a million cases in this hub, further developed consumer interest and support with a promotion that helped to deliver double-digit growth in core markets such as Colombia, Venezuela, Mexico and Brazil.

The introduction of Johnnie Walker Blue Label, Johnnie Walker Green Label and Cîroc provided consumers seeking luxury-drinking experiences with new offerings. As economic stability continues to spread throughout Latin America, rising consumer confidence offered opportunities for Diageo’s premiumisation efforts.

While Red Stripe has been in decline in its home market of Jamaica, it finished the year in growth. This resulted in part from the introduction of a marketing programme, ‘Live Red’, to refresh the brand and help maintain its iconic status. Red Stripe also maximised its sponsorship of the ICC Cricket World Cup with proprietary World Cup Party events and debuted an innovative, limited-edition Red Stripe Cricket World Cup pack.

With a recent £20 million investment in the development of new vineyards in Argentina, Navarro Correas continued to pave the way for ongoing development of a true Latin American wine business. Navarro Correas was the lead wine brand for market introductions in Colombia, Venezuela, Peru and Brazil.

Global Travel and Middle East
Diageo’s GTME business overcame considerable disruption caused by security issues and subsequent restrictive travel measures that were put in place around the world, as well as unrest within the Middle East, particularly in the Lebanon. In spite of this, the hub delivered net sales growth of 8%, benefiting from a refocused strategy with significant emphasis on customer partnering, sales execution and driving brand visibility.

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1. Nigeria was the second largest market for Guinness
2. Smirnoff Storm launched in South Africa
3. The ‘Buchanan’s Forever’ concert series featured Jon Bon Jovi
4. Lewis Hamilton embarked on an impressive career claiming several Grand Prix victories for Team Vodafone McLaren Mercedes, sponsored by Johnnie Walker
5. Over 500,000 people have been reached with Diageo’s Water of Life programme in Africa
6. ‘Guinness Greatness’ ad campaign enhanced sales in Africa
7. Diageo’s sponsorship of the ICC Cricket World Cup donated $1 million to Habitat for Humanity