Flavours drive Baileys duty-free growth

27 August, 2008
Page 17 
Diageo Global Travel & Middle East has sold almost 2 million bottles of Baileys Mint Chocolate and Crème Caramel since their launch two years ago.

The performance of the two flavour extensions helped the liqueur brand to increase overall duty-free sales by 11 per cent in the year ending June 30. Promising duty-free markets for Baileys in this period included Asia, Russia and, most importantly in terms of volume, Latin America.

"There is no sign of the ­customers getting tired of the flavours," said G T M E marketing director Nick Robinson. "They are still not available in all duty-free areas and there are still many travellers who are unaware of them.

"All initiatives therefore will continue to include the flavours and we expect further volume growth ."

The other star duty-free performer for Diageo was Johnnie Walker, which saw sales rise 8 per cent. The launch of the US$400 ultra-premium Johnnie Walker Blue Label George V earlier this year proved particularly effective in spurring sales of the less expensive Blue Label .

In terms of duty-free and travel-retail markets Europe was relatively sluggish for Diageo in the year to June 30, returning low, single-digit sales growth. In contrast, the Americas grew much faster, while forward momentum in Asia/Pacific started to slow, despite encouraging rises in super-premium sales.

Overall duty-free volumes for the company rose 7 per cent, while net sales grew 8 per cent.

Comment

Christian Davis

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