Whisky-maker Diageo hailed a better performance in the US as it posted much-improved first half trading figures.
The drink company behind the world’s best-selling whisky brand, Johnnie Walker (JW), achieved 3.6% year-on-year growth of net spirits to America – its biggest and most profitable market – during the first six months of its current trading year.
Net sales of flagship brand JW in the US were up by 8% as Diageo’s Scotch whisky exports enjoyed growth in all parts of the world except Asia.
Sales of Scotch in China returned to growth after a lean spell, delivering a net increase of 7%.
And there were storming performances for Scotch in Japan – up 29% – and in India, where huge demand for JW drove up total net sales of Scotch by 11%.
But the overall Asian performance was badly impacted by a collapse in the Thai market following the death of the country’s long-reigning monarch, Bhumibol Adulyadej, in October.
Thailand – a key market for Scotch exports – is in a year-long period of mourning, with the closure of many of its bars, restaurants and other on-trade outlets during the first month causing a 17% fall in Diageo’s total net sales there during its first half to December 31.
Elsewhere in Asia, travel retail and Middle Eastern net sales declined 18% on the back of lower spending by travellers, currency volatility and geopolitical factors.
Globally, net sales of Scotch – representing 27% of Diageo’s overall business – grew by 6% as strong performances by JW and Buchanan’s drove growth in North America, Europe, Africa, Latin America and the Caribbean.
John Kennedy, Diageo’s president for Europe, Russia and Turkey, said growing sales of Scotch around the world bode well for the “industry infrastructure” behind Scotland’s national drink.
While he said there were no new major new projects on the horizon for Diageo’s Scottish operations, the firm had invested heavily in their expansion in recent years.
Mr Kennedy said the company was also encouraged by the UK Government’s talk of new free trade deals on the back of the Brexit vote.
“The more free trade deals around the world the better,” he said, adding today’s meeting between Prime Minister Theresa May and new US president Donald Trump was potentially an early chance to help boost sales of Scotch in the US.
Diageo’s other whisky brands include Bell’s, J&B, Haig Club and Vat 69. Its single malt range includes Caol Ila, Cardhu, Dalwhinnie, Knockando, Lagavulin, Oban, Royal Lochnagar, The Singleton and Talisker.
The company also produces Guinness stout, Smirnoff vodka, Baileys liqueur, Captain Morgan rum and Tanqueray gin.
Across the group, first half total net sales grew by 14.5% to £6.4billion, fuelled by organic growth of 1.8% by volume and 4.4% by value, while pre-tax profits surged by more than 16% to £2.1billion.