British beverage giant Diageo has increased its global marketing investment by 5.6%, with its overall marketing spend rising to £3bn, up from £2.7bn a year ago. The news came as the firm released its financial results for the year to 30 June.
The Guinness owner also registered net sales of £17.1bn, an increase of 10.7% on last year; whilst its operating profits rose by 5% to £4.6bn. Diageo attributed these promising figures to “strong organic net sales growth, and favourable impacts from foreign exchange”.
By prioritising investment in its Baileys, Guinness, Johnnie Walker and Tanqueray brands, the firm managed to grow its European marketing investment by 7%, with this figure however standing noticeably lower at 2% for the North American market.
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On the half-year results, CEO Debra Crew said: “Fiscal 24 marks the start of Diageo’s next stage of evolution, and it is an incredible privilege to be leading the company through it. I believe total beverage alcohol (TBA) is an attractive sector underpinned by strong consumer fundamentals, including population growth, increased spirits penetration, and resilience in premiumisation globally.
“I see a long runway of future growth opportunities for Diageo to go after with our winning strategy. And, I firmly believe we have an advantaged portfolio to capitalise on, to drive sustainable long-term growth and generate value for shareholders.”
Encouragingly, Diageo saw growth across four of its five regions; acquiring a range of international brands over the past year including Australian coffee liqueur Mr Black, US malt whiskey Balcones Distilling and Filipino dark rum Don Papa Rum.
