Global net sales were down 3% over the last 12 months for Diageo, according to a report the company released today. The world’s largest drinks maker realized a net profit during the year that ended June 30 of $2.94 billion, down from last year’s $3.13 billion.
Diageo pinned this decline largely on adverse currency exchange conditions.
The North America market enjoyed success. Depletions were up 3%, as was net sales, increasing from $4.53 billion to $4.68 billion. This comes a year after Diageo sales in North America slipped 1%.
Growth was fueled by a strong second half of the year (+10%), the company reports, driven in large part by North American whiskey. Net sales were up 6% for that category, as Bulleit and Crown Royal continued to gain share in the category, the company says.
Crown Royal net sales increased 5%, with net sales of Crown Royal Deluxe up 5%.
Smirnoff and Captain Morgan were up 2% in net sales in North America, though that meant that Smirnoff underperformed the overall vodka category. In scotch, Johnnie Walker and Buchanan’s gained 7% and 9%, respectively.
Reserve brands also improved in North America, Diageo reports, with net sales up 5%, driven by Johnnie Walker reserve variants, Bulleit, Don Julio and Ketel One vodka.
Marketing in North America was down 2% as a result of “procurement efficiencies and more focused spend on innovation,” the company reports.