Diageo keeps an eye on cannabis as gin and tequila sales soar

July 25, 2019 by erfa5t8

Diageo, the drinks firm behind Guinness and Johnnie Walker whisky, stated it was keeping one eye on the North American marijuana industry, as skyrocketing gin and tequila

sales helped boost revenues. Pretax profit rose by 12% to ₤ 4.2 bn on the back of sales that were almost 6% higher at ₤ 12.9 bn, activating plans to return ₤ 4.5 bn to investors over the next 3 years.

Without a doubt the best-performing spirits in Diageo’s steady were gin and tequila. Led by its Tanqueray brand name, gin sales were up 23%, while tequila grew by 37% thanks to the rising appeal of its Don Julio label.

A whisky tie-up with Video game of Thrones that spawned White Walker by Johnnie Walker helped increase scotch, which accounts for a quarter of the business’s net sales, by 6%.

Diageo has up until now shied away from the method taken by competitors such as the United States drinks firm Constellation Brands, which purchased 40% of the world’s largest marijuana company Canopy Growth to secure a grip in the fast-growing market

. But Diageo’s president, Ivan Menezes, stated the company might not eliminate following suit, depending on how the marketplace develops for cannabis, which is legal in Canada and some US states.

” On cannabis we’re just tracking it, it’s at a really early stage,” said Menezes, who has been at Diageo since 1997.” We’re looking at the sector, it’s nascent and we just want to understand the consumer behaviour.”

He included that Diageo’s business did not appear to have actually been impacted by the legalisation of marijuana in parts of the United States, tallying with research suggesting drinkers have not changed in great deals to smoking cigarettes marijuana.

Menezes likewise said Diageo had no need to follow in the steps of multinational beer business by spending for a craft brewery. Register to the daily Organisation Today email or follow Guardian Organisation on Twitter at @BusinessDesk” The supreme craft brewer is Guinness,” he said. Diageo has spent ₤ 150m on a new

Johnnie Walker visitor centre in Edinburgh, which it prepares to open in time for the scotch brand name’s 200th anniversary next year. But the strategies have actually been somewhat eclipsed by

the hazard of strike action across its Scottish operations. The company stated it was still talking with unions, who turned down a fresh pay offer today, and hoped to be able to reach an offer. Topics Diageo Food & drink market Whisky< a class=" submeta __


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Marijuana Products / Marijuana Today

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