Diageo reports 8% drop in Scotch whisky sales

Drinks giant Diageo has reported a sharp fall in worldwide sales of Scotch whisky in the second half of last year.

Overall, Scotch sales dropped by 8% - a bigger dip than most of its other spirits.

The Johnnie Walker brand fell by 12%, as airport shops saw a sharp drop in passenger numbers, hitting Asian sales particularly hard.

North America was the only continent to see a rise in sales, with Scotch alone growing by 6%.

That result there was driven by good performances from Johnnie Walker and Buchanan's, which were partially offset by a decline in single malts.

Ciroc and Smirnoff vodka also saw growth in North America, of 6% and 17% respectively.

Overall, Diageo managed to perform better than anticipated, as heavy falls in sales from pubs closures and fewer airport passengers were partially offset by supermarket and off-licence trade.

Total net sales in the six months to the end of 2020 fell 4.5% to £6.9bn, with pre-tax profits down 8.3% to £2.2bn.

Off-licence sales

Diageo finance director Kathy Mikells said off-licence sales saw strong growth across the globe.

She said: "We've been particularly strong in the United States, Australia, Brazil and France where we're gaining very strongly.

"We're seeing very strong share gains and performance in the off-trade, notwithstanding that we are being impacted by the restrictions that are on trade."

Ms Mikells added that customers were turning to trusted brands and premium products during the pandemic and looking for home comforts.

"People are really interested in the occasional treat and indulgence," she said.