Diageo’s fastest-growing spirits brands 2015/16

Diageo’s six ‘global giants’ are all back in organic growth, but the world’s biggest drinks group had a mixed experience across its wider spirits portfolio in 2015/16.

Don Julio was one of Diageo’s top five fastest-growing brands in 2015/16

Yesterday, the group revealed that its reported net sales had fallen 3% to  £10.4 billion, while net profit fell 6% to £2.24bn due to currency volatility. As such, the group saw more positive results on an organic basis, which excludes the impact of currency and acquisitions.

Diageo’s six ‘global giants’ ­– Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray and Guinness – witnessed growth, but a few ‘local stars’ wavered.

Across the following pages, we countdown Diageo’s fastest-growing brands over the last 12 months, on an organic basis.

5. Buchanan’s

Organic net sales: + 10%

Diageo’s Scotch brands, which represent 24% of the group’s total net sales, remained largely flat in 2015/16. Blended label Buchanan’s is the only Scotch in Diageo’s stable to be included in this list of the group’s fastest-growing brands. The brand, which falls under Diageo’s ‘local stars’ group due to its prevalence in Latin America, saw strong growth in North America, Europe and Latin American and Caribbean, supported by new advertising campaigns. In October last year, new packaging was revealed for Buchanan’s in order to create a “more contemporary look”.

4. Tanqueray

Organic net sales: +12%

Super-premium gin brand Tanqueray was the only one of Diageo’s ‘global giants’ to report double-digit growth in 2015/16. The brand delivered “strong growth” across all its regions, with Europe and North America accounting for 12% of net sales. Sitting in Diageo’s Reserve brands portfolio, Tanqueray’s popular line extension Tanqueray Ten witnessed an impressive net sales growth of 26%. Last year, the brand expanded its product range with the launch of the limited edition Tanqueray Bloomsbury, inspired by a recipe from the 1800s.

3. Don Julio

Organic net sales: +18%

Sitting in Diageo’s Reserve portfolio, super-premium Tequila brand Don Julio increased organic sales by 18% in the 12 months to 30 June 2016. Diageo fully acquired the brand from Jose Cuervo in March last year, giving the group ownership of Bushmills Irish whiskey in return. Diageo already owned a 50% stake in Don Julio, but has been seeking to enhance its presence in super-premium Tequila over a number of years. Shortly after the deal was completed last year, Diageo pledged to invest US$400m to increase capacity for Don Julio at its site in Jalisco, Mexico.

2. Shui Jing Fang

Organic net sales: +20%

Acquired by Diageo in 2013, baijiu brand Shui Jing Fang has had a turbulent time over the past three years. Following China’s long-running campaign of austerity to crackdown on excessive gifting and perceived government corruption, Diageo was forced to write down the value of Shui Jing Fang by £264m in 2014. However, a rebound that started in 2014/15 continued through to the latest financial year, when the brand reported organic net sales growth of 20%. The brand’s growth in its key Chinese market has been spurred by an engaging advertising campaign.

1. Bulleit

Organic net sales: +29%

Bulleit Bourbon was the fastest-growing brand in Diageo’s portfolio in 2015/16, posting a whopping 29% organic gains. On a reported basis, the brand grew even more – +36%. The majority of this uplift came from the US, where Bulleit continues to gain share alongside Diageo’s other key North American whisky brand, Crown Royal. The group is on-track to complete its US$115m Bourbon distillery in Shelby County, Kentucky, by the end of this year. The Bulleit Distilling Co will have capacity to produce 750,000 nine-litre cases of the flagship Bulleit brand, along with other “future” North American whiskeys.